A Loan Modification is a permanent change in one or more of the terms of a Mortgagor's loan, allows the loan to be reinstated, and results in a payment the Mortgagor can afford.


Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower.

Types of modification

Mortgages are modified to the benefit of the borrower in one or more of the following ways:

• Reduction in interest rate, or a change from a floating to a fixed rate, or in how the floating rate is computed
• Reduction in principal
• Reduction in late fees or other penalties
• Lengthening of the loan term
• Capping the monthly payment to a percentage of household income
• Mortgage forbearance program



Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditor. Creditors may file a bankruptcy petition against a business or corporate debtor (“involuntary bankruptcy”) in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a “voluntary bankruptcy” that is filed by the insolvent individual or organization). An involuntary bankruptcy petition may not be filed against an individual consumer debtor who is not engaged in business.



Family law is an area of the law that deals with family-related issues and domestic relations including:

• The nature of marriage, civil unions, and domestic partnerships.

• Issues arising throughout marriage, including spousal abuse, legitimacy, adoption, surrogacy, and child abuse.

• The termination of the relationship and ancillary matters including divorce, annulment, property settlements, alimony, and parental responsibility orders (in the United States, child custody and visitation, child support, and alimony awards).