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Loan Modification

Helps you keep your home and have more manageable mortgage payments

What you need to know 

With a loan modification, the terms of your original mortgage (like your interest rate or number of years allowed for repayment) may be changed, bringing your account up-to-date and making your payments more manageable.

How you could benefit

By having certain terms of your mortgage modified — whether it be the interest rate, years allowed for repayment, or a combination — your monthly payment may be lowered to an amount that’s more manageable for you.

How to get started

There are numerous loan modification programs available, including the federal government’s Home Affordable Modification Program (HAMP). Although the programs have different options for homeowners in different situations, all modifications are meant to help struggling homeowners keep their homes. We will work closely with you to see which program may work for you.

Important considerations in a loan modification

  • After you contact a loss mitigation representative, you will receive or may already have a workout package with instructions outlining the modification program and requesting important information and documentation from you
  • Most insurers also require a review of your gross/net income as well as expenses to determine if the payment adjustment will be affordable moving forward.
  • Many loan modifications begin with a three-month trial period. If you are facing imminent default, a four-month trial period plan is required. If you are eligible for the program, you will need to make the trial period payments in the specific amounts and by specific due dates. During the trial period, you will make the trial period payment amount instead of the payment amount that appears on your monthly statement. 
  • If you make all required trial period payments and meet all requirements, you will receive a final loan modification that adjusts the terms of your mortgage, and you will have a new modified mortgage payment consistent with the agreement.
 How your credit may be affected
  • During the loan modification trial period your credit score may be negatively impacted, particularly if your payments are not current. However, it may be less negative than an ongoing series of late payments or foreclosure.
  • Payments during a modification trial period are recorded on your credit report as “paying under a partial or modified payment agreement.”
  • Over time, the impact of the trial modification on your credit score is likely reduced depending on your unique credit profile.
  • When you are approved for a loan modification, the modification process is complete and is recorded on your credit report as “loan modified” as long as you make your modified payments on time.
Fast facts 
  • Changes the terms of your original mortgage
  • Provides you with a more manageable payment
  • Gives you an active role in the process
  • May reduce negative credit impact in the future
  • Helps you avoid a foreclosure sale and move forward sooner
Loan modification process 

Timing may vary depending on your insurer's requirements.

  1. Trial period: approximately 90-120 days
    • You make a number of consecutive trial payments in an amount similar to the amount you would pay with a loan modification.
    • Your loss mitigation representative will monitor your trial period for on-time payments.
    • Certain programs or insurers may not require a trial period.
  2. Final modification: approximately 45 days
    • When you return the signed modification agreement within the required time frame, we will process the modification and send you a finalized copy. At this point, the modified terms replace the original terms of your loan. Once our system has been updated, you may resume using pay-by-phone and website services.