Save Your Home Fast With Legal Loan Modifications

Types of Loan Modifications

There are several types of loan modifications available, each tailored to address specific financial challenges. Common modifications include interest rate reductions, term extensions, and principal forbearance. In some cases, lenders may agree to a principal reduction, where a portion of your mortgage debt is forgiven, reducing your overall loan balance.

Interest rate reductions involve lowering the interest rate on your mortgage, which can lead to lower monthly payments. Term extensions increase the length of your loan, spreading payments over a longer period to reduce monthly costs. Principal forbearance allows you to temporarily defer a portion of your principal balance, which can be added to the end of your loan term.