It is a negotiation along with your home loan company which will make a great brand new arrangement one to modifies the first terms of your own home loan. When you yourself have a long-identity inability to invest the mortgage, that loan modification would be an alternative if you want to maintain your home.
That loan amendment generally speaking relates to contacting the latest servicer into the bank (the business one to sends you the mortgage statements every month) and you may discuss to lower the rate on your own mortgage, that reduce the monthly payment.
When you have arrears on your mortgage, that loan amendment might lengthen the mortgage, are the arrears and you can people earlier-owed amounts over to day.