The Modification Process

Before we discuss the mortgage modification process, it is helpful if you know a few things about what a mortgage modification is not.

A mortgage modification…

• IS NOT a new loan

• IS NOT a refinance

• DOES NOT require a credit check

According to Investopedia a loan modification is:

A modification to an existing loan made by a lender in response to a borrower’s long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.

A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long-term solution for borrowers who will never be able to repay an existing loan.

While it is true that other options like a forbearance agreement, short sale or deed-in-lieu of foreclosure may be applicable to your situation, our goal at Michigan Mortgage Modification LLC is to assist homeowners, who want to stay in their homes, find a permanent solution through a professionally negotiated mortgage modification.

We’ve created a presentation that explains the mortgage modification process in detail. Take a moment to review it. You will find the answers to many of your questions here.