Stop Foreclosure

For The American Homeowner

What Is Loan Modification?

Due to the duration of the current state of the economy most of you probably know what a loan modification is, have a general idea of how it works, or at the very least have heard the term “loan modification” thrown around from time to time. Just in case you have been dozing, or have no interest or aptitude for the world of loss mitigation nor the mechanics of finance, I have created this post to explain the very basics of loan modification.

First of all loan modification will also be refered to as mortgage modification, a restructured mortgage loan, or in different contexts such as “ask your lender to modify” , and of course among the industry insiders refer to it as a “loan mod” or a “modification

One half way important aspect of a loan modification that I want to make clear is that a loan modification is not a term that was thought up for the mortgage industry it is in fact a legal term that can refer to any sort of contract adjustment whether a loan for a car or whatever. Though today in this current foreclosure crisis and time of financial hardship the term loan modification is primarily known as a mortgage industry loss mitigation solution. Thus this post will refer to it in that context.

Loan Modification

The modification or adjustment to the terms of a mortgage agreement that is granted by the lender in the efforts minimize losses of a non-performing mortgage asset (a practice commonly refered to as loss mitigation).

A restructured mortgage agreement may allow a homeowner to make home affordable by lowering the monthly mortgage payment to a sustainable level.

Mortgage modification is a loss mitigation tool that can be used as an alternative to foreclosure and a solution to a troubled mortgage.

Loan Modification Will Stop Foreclosure

Loan Modification Programs

For the first time there is effective homeowner debt help such as a loan modification program that the government provides as mortgage assistance. The Making Home Affordable Programs also known as HAMP and HARP are wonderful outlets for Homeowners to obtain a loan modification or other mortgage solution that allows them to stop foreclosure and get on the track to financial recovery. These programs stream lined and efficient. They are paid for by the tax payer so there is no direct cost to the Homeowner.

February 28, 2009 - Posted by | finance


  1. I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.

    Comment by Bill Cash | March 3, 2009 | Reply

    • Hey thanks so much bud and do please come back and feel free to share what ever is on your mind!

      Comment by hope002 | May 15, 2009 | Reply

  2. Great stuff Here Bud

    Comment by stop foreclosure | March 10, 2009 | Reply

  3. Thanks folks i appreciate the comments keep them coming!

    Comment by hope002 | March 12, 2009 | Reply

  4. Interesting blog, I’ll try and spread the word.

    Comment by Advertising | March 19, 2009 | Reply

    • Hey thanks guy I really appreciate the support, feel free to arrange for a link exchange!

      Comment by hope002 | May 15, 2009 | Reply

  5. I agree that your site is well designed. Good definition, BTW. -Justin@modificationzoom

    Comment by Loan Modification Zoom | April 30, 2009 | Reply

  6. […] Yes, but at the same time the economy and the American Homeowner is no where close to taken a breather. The decrease in foreclosures can be attributed to several factors such as the increase in the number of loan modifications. […]

    Pingback by Foreclosure Sales Drop – 4 Month Trend « Stop Foreclosure | December 11, 2009 | Reply

  7. […] you simply can not afford it and you have already tried and retried a mortgage workout such as loan modification, but your home is simply not with in your means then you can still obtain some significant […]

    Pingback by Citi Mortgage Keeps Homes on Hold for the Holidays « Stop Foreclosure | December 17, 2009 | Reply

  8. […] Loan Modification can stop foreclosure and or help a homeowner make home affordable by lowering the monthly mortgage payment. […]

    Pingback by Loan Modification: sending your financial package « Stop Foreclosure | April 16, 2010 | Reply

  9. […] post of this series on the Obama Make Home Affordable plan. the next post will be dedicated to the loan modification side of this mortgage help […]

    Pingback by Obama: Make Home Affordable Refinance (2 of 3) « Stop Foreclosure | June 24, 2010 | Reply

  10. […] post will focus primarily on the loan modification side of […]

    Pingback by Obama’s Plan: Make Home Affordable Loan Modification (3 of 3) « Stop Foreclosure | June 24, 2010 | Reply

  11. […] mitigation department. The real battle to win before a Homeowner can have a chance of obtaining a loan modification is to find a senior loss mitigation contact who will take a look at their […]

    Pingback by Why Won’t My Lender Modify My Mortgage? « Stop Foreclosure | June 24, 2010 | Reply

  12. […] a Homeowner may attempt to obtain a loan modification or a forbearance agreement as a foreclosure alternative or form of foreclosure […]

    Pingback by Foreclosure Prevention « Stop Foreclosure | June 29, 2010 | Reply

  13. […] counseling services and government programs. You can stop foreclosure through these great loan modification and mortgage refinance […]

    Pingback by Foreclosure Hope: Reference of Hope to Struggling Homeowners « Stop Foreclosure | July 14, 2010 | Reply

  14. […] very likely to occur. Mortgage related loss mitigation often results in mortgage workouts such as loan modification or even a mortgage refinance through the Making Home Affordable […]

    Pingback by Loss Mitigation: Stop Foreclosure « Stop Foreclosure | July 14, 2010 | Reply

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