With a mortgage modification, you and your lender will agree in writing to change one or more of your loan terms in order to make your payments more affordable and sustainable. The modified terms can include your interest rate, loan duration, and loan type (e.g., changing from an ARM to a fixed-rate mortgage).
If you are several months behind on your mortgage, or expect you will fall behind soon, a loan modification can make your monthly payments more affordable and help you avoid foreclosure. Talk with your lender to determine if a modification is the right option for you.
The most important thing you can do if you’re having trouble making your mortgage payments is to call your lender.
A modification may make sense if you:
- Are behind on your mortgage or believe you'll fall behind soon.
- Are facing a long-term financial hardship.
- Do not qualify for our Relief Refinance options.
Be aware that mortgage workout options affect your credit rating, some more than others. Talk with your lender about how your credit may be affected.