Real Estate Glossary

Loan modification

/glossary/loan-modification
A change to the terms of an existing mortgage — typically a lower interest rate, extended term, or capitalized arrears — to help a borrower avoid foreclosure. Negotiated with the lender; takes 60-180 days.

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Reviewed by John Quigley · Founder, BuyHousesInCash · Last updated May 2026

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