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What you need to
know
By
definition, a loan
modification is a
permanent change in
the terms of your
loan which allows it
to be reinstated,
and ideally results
in a payment that
you can afford. A
loan modification is
designed to prevent
you from going into
default, and in some
cases, it will only
provide you with a
lower interest rate
for a specified
amount of time.
Loan modification is
not refinancing. In
fact, if you are
able to refinance,
it is generally
faster and easier to
go that route. Of
course, there are
other factors and
considerations when
considering
refinancing in this
instance. Opting to
refinance rather
than modify your
loan removes any
protection for you
against the lender
collecting a
delinquency judgment
should you end up in
foreclosure anyway. |
