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Home > Stop Foreclosure > Long Term Foreclosure Solutions > Mortgage Modification, Extend Your Mortgage To Stop Foreclosure Mortgage Modification, Extend Your Mortgage To Stop Foreclosure Extending your mortgage to stop foreclosure is called mortgage modification
Mortgage modification allows you the the debtor to extend the term of the loan therefore redusing your monthly mortgage.
From About.com:
If you can make your regular payment now, but cannot catch-up the past due amount, the lender might agree to modify your mortgage.
One solution is to add the past due amount into your existing loan, financing it over a long term.
Modification might also be possible if you no longer have the ability to make payments at the former level.
The lender can modify your mortgage to extend the length of your loan or take other steps to reduce your payments.
From Blackenterprise.com:
For example, mortgage modification could allow a borrower who has paid three years into a 30-year, fixed-rate $150,000 mortgage to refinance the remaining 27 years, not the entire 30 years.
By refinancing over 27 years instead of 30 years you reduce the interest rate and lower the payment.
This really benefits borrowers who paid into the loan for a short time and want the amenities that refinancing brings but can't afford the higher monthly payments of refinancing from a 30-year, fixed-rate mortgage to a 15-year, fixed-rate mortgage.
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