A mortgage loan modification is a change in your loan terms. The modification is a type of loss mitigation.
Share this
00:00
Carefully consider what kind of modification best addresses your needs. If you receive a loan modification and you still can’t make the payments, you may lose your home. If you’d like to learn more about your options, talk to a U.S. Department of Housing and Urban Development (HUD)-approved housing counseling agency. Call the CFPB at (855) 411-CFPB (2372) to be connected to a trained housing counselor.
The modification can reduce your monthly payment to an amount you can afford.
Modifications may involve extending the number of years you have to repay the loan, reducing your interest rate, and/or forbearing or reducing your principal balance.
If you are offered a loan modification, be sure you know how it will change your monthly payments and the total amount that you will owe in the short-term and the long-term.
For more information about how to avoid foreclosure, use our checklist
. If you are facing imminent foreclosure or have been served with legal papers, you may also need to consult an attorney.
Read full answerWe're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.
The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.
