Hardship Loan Modification
What’s included
Pause Mortgage Payments
A hardship loan modification doesn’t erase your missed payments, but it restructures your loan so your payments become manageable going forward. While your application is under review, most lenders will place your account in loss mitigation status, which temporarily pauses collection activity. This can give you breathing room so you don’t have to immediately catch up on all missed payments.
Avoid Foreclosure!
The main purpose of a loan modification is to prevent foreclosure. By working with your lender, the foreclosure process is usually paused while your application is being reviewed. If the modification is approved, your loan terms are permanently changed (lower interest rate, longer repayment term, or sometimes principal forbearance), which makes it possible to stay in your home.
Start Making ontime payments
A successful modification restructures your mortgage so the monthly payment fits your actual income. That might mean:
Reducing the interest rate
Extending the loan term (spreading out payments over more years)
Adding past-due amounts to the end of the loan instead of requiring them upfront
This way, you can resume making consistent, on-time payments, which keeps your loan current and helps you rebuild good standing with your lender.