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A Loan Modification or Mortgage Modification

is a process where you negotiate with your bank to change the terms of your mortgage loan. They are used both for people who are current and for those who are late and even for those in foreclosure. Due to the crisis in the housing industry modifications are being accepted by banks that include lowering the balance on your loan, lowering your payment, forgiving or discounting second mortgage payoffs, waiving payments or putting them on the back of the loan, and other solutions that were not common even a few years ago. In fact if you have been turned down for a Mortgage, it is very likely that you will be eligible for a modification at a better rate and terms then the mortgage you were turned down on.