A modification is changing any part of your loan such as lowering your payment or your interest rate. It could also be changing the term of your loan or reducing the principal balance.  A modification is NOT just a deferment or a repayment plan.  The end result is usually lower payments that will help you keep your home.

Why would a bank or lender consider a mortgage modification? Well lenders are becoming more practical.  They don’t want another foreclosure on a home.  They have more incentives now to modify your loan.