You want to stay in your home. That’s natural. One way homeowners try is through a loan modification.
What’s a Loan Mod?
Your lender changes the loan terms — usually lowering your monthly payment by reducing the rate or stretching out the term.
Why Homeowners Try It
- Stay in your home
- Lower payments
- Private, not public record
The Catches
- You only get one shot at a modification
- Often just delays the problem
- Many homeowners fall behind again later
- No fresh start — you’re tied to the same debt
Here are some common questions: What is a loan modification? What if I fall behind again after a loan modification? How many times can I get a loan modification? Will a loan modification show up on my credit report?
Bottom line: If your hardship is short-term, a loan mod may help. But if your finances aren’t going to improve, it usually just postpones foreclosure.
Thinking about a loan mod? Before you use your one chance, let House Karma walk you through the pros, cons, and alternatives. We’ll help you avoid mistakes. [Talk to an Expert →]
