What does it mean when a mortgage is modified?

A loan modification is a change to the original terms of your mortgage loan. Unlike a refinance, a loan modification doesn’t pay off your current mortgage and replace it with a new one. Instead, it directly changes the conditions of your loan.

Is a loan modification a foreclosure?

A mortgage loan modification is one of the most common types of loss mitigation, the term for techniques to prevent a foreclosure. The modification changes the original terms of the promissory note to reduce the amount of the monthly payments, usually while lengthening the term of the mortgage to compensate.

What happens after a loan modification is approved?

After the loan modification is complete, your mortgage payment will decrease permanently. The amount you’ll have to pay depends on the type of changes your lender makes to your existing mortgage loan.

How long does a loan modification take?

6 to 9 months
The loan modification process typically takes 6 to 9 months, depending on your lender.

What are the loan origination and Loan modification requirements in Idaho?

However, loan origination and loan modification activities must be exclusive to only one Idaho licensee. Any felony conviction, plea or finding during the previous seven (7) years; Any felony conviction, plea or finding at any time if the felony involved an act of fraud, dishonesty, breach of trust or money laundering;

What is a mortgage loan modification?

What is a mortgage loan modification? A mortgage loan modification is a change in your loan terms. The modification is a type of loss mitigation. If playback doesn’t begin shortly, try restarting your device.

What are the eligibility factors for a loan modification?

There are some key eligibility factors for a loan modification. These may include: All parties on the loan must agree to participate in the modification process.

What is an Idaho mortgage broker/lender?

Companies that service residential mortgage loans, whether first party or third party, regardless of lien position, will now be licensed as an Idaho Mortgage Broker/Lender.