What is a Mortgage Modification?
A Mortgage Modification is simply adjusting a mortgage loan in order to decrease payment amount or other terms to alleviate the borrower from current financial stress. Borrowers must meet certain guidelines by their bank and this usually results in extended mortgage terms and higher fees. It is known that most modifications have just delayed the inevitable with many borrowers utimately resulting in their default and simply kicking the can down the road causing a longer recovery period. It is critical to thoroughly understand the terms of the modification because it can add more debt and stress onto the situation.