Loan modification is a restructuring of a secured loan, usually
a mortgage, to incorporate missed payments, into a proposed
modification agreement” The new modification often has better
terms – including a lower interest rate, a longer term and deferred
arrears. Loan modification is often the main and most promising
method of resolving distressed mortgage loan situations.
However, because secured lenders have discretion as to whether
to approve a loan modification, the application process can
be challenging and is often benefited from experienced legal
representation.