Loan modification

A modification edits the current loan instead of replacing it. The change might involve the rate, the remaining term, or how past-due amounts are handled, among other possibilities. A refinance is a new loan that pays off the old one. Forbearance is a temporary payment pause or reduction. This page does not name current investor programs.

CFPB defines a mortgage loan modification as a change in loan terms and a type of loss mitigation. Fannie Mae’s consumer glossary includes a modification heading.

Borrowers offered help need to know whether the note itself is changing or only the near-term payment.

A modification is not a refinance and not automatic forgiveness.