What a Mortgage Modification Is and Why They Are In Such Great Demand
A mortgage modification is when the lender combines the total amount owed on your mortgage, including all the missed payments and fees and changes the terms of your mortgage to (basically) reflect a new mortgage. Sometimes they will re-amortize the loan, or lower the interest rate, or both. The end result is immediately stopping the foreclosure and new monthly payment.Loss Mitigation is a term used when the repayment terms of your loan are negotiated with your lender. Many people seek professional negotiators to handle loss mitigation, because it can save a homeowner tens of thousands of dollars over the life of the loan. However, loss mitigation is something you can do on your own, if you have the time and experience. Just as a successful negotiation with your lender can save your home, a bad negotiation, or revealing too much information, can virtually guarantee the loss of your home. It is imperative to understand what you are up against before you attempt to negotiate on your own.