Loan Modifications Are A Renegotiation

Loan modifications are not a refinance. Loan modifications are a renegotiation. The terms of the current mortgage are renegotiated, with an emphasis on giving the homeowner more control of their payments.

To better understand, let’s give you a breakdown of the components of a refinance, and a renegotiation.

Loan Modification Benefits

In a loan refinance

- Credit driven
- LTV based
- Income driven
- Closing costs
- Bank qualifying required
- Thousands in fees
- Very hard to qualify

In a loan modification

- Credit not a factor
- Not LTV driven
- No closing costs
- No bank qualifying
- Cheaper than a refinance
- It’s in the banks’ interest