Loan Modification
A loan modification permanently changes the terms of an existing mortgage — lowering the rate, extending the term, or rolling missed payments into the balance — to make payments affordable again after a hardship.
Unlike forbearance, which is temporary, a modification permanently rewrites the loan. The borrower applies with financial documentation, the servicer evaluates the request under investor or agency guidelines, and if approved, the borrower signs a new loan agreement.
Modification review can take weeks to months, and in California the foreclosure clock (notice of default, then notice of trustee's sale) can keep running in parallel unless the servicer agrees to a formal pause — get any hold confirmed in writing.
A modification that isn't approved in time, or that still leaves payments unaffordable, often brings sellers back to the same decision: sell before the trustee's sale date rather than risk losing the home and remaining equity to foreclosure. Speak with a HUD-approved counselor or attorney if a modification is denied.
Need Personalized Help?
Every situation is different. Get a free, no-obligation consultation and cash offer for your specific property.