What is a Loan Modification Program?

A loan modification program is a program offered by your lender which changes the terms of your mortgage loan in order to make the loan payment more affordable in an effort to prevent foreclosure. This can be accomplished by lowering the interest rate, extending the payback period of your loan, or possibly forgiving some of the principal, those this is unlikely. There are many companies that will charge you a hefty fee and promise that they can modify your loan. However, your best option is to contact your mortgage lender directly.