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The Meaning of Mortgage Loan Modification

Posted by Chris on July 30, 2012
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A loan modification is an agreement between a borrower and a lender to re-negotiate the terms of an existing mortgage in order to make a borrower’s payments more affordable. For the borrower, loan modification is a way to prevent or forestall default and possible foreclosure on a home. For a lender, loan modification offers a way to avert the costs of foreclosure and sale of a repossessed property. In many cases it can be less expensive for a bank to modify the terms of an existing mortgage than to force a borrower into insolvency and/or bankruptcy. Continue Reading

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