What is a Home Loan Modification?

A home loan modification can go by various other names, including:

  • a mortgage modification;
  • a restructuring plan; or
  • a workout plan.

Essentially, a home loan modification is a process that allows a borrower, usually someone in the unfortunate position of experiencing financial hardship and having difficulty remaining current on their monthly mortgage payments, to work with their lender to alter the terms and conditions of their mortgage loan.

The Intended Effect of a Home Loan Modification

The restructuring plan is designed to temporarily or permanently change the mortgage rate and/or terms. The desired end result is to reduce the borrower’s monthly payments on the loan. Ideally, this will allow the borrow some time to work through their financial difficulties and, hopefully, to be in a position where future mortgage repayments are able to be met.

The terms of the mortgage are modified outside the original contract agreed by the parties.

Home Loan Modification

New York Real Estate Attorney


The Law Office of George Russo and Associates, P.C. has offices in Queens, New York and Brooklyn, New York. Attorney George Russo has more than 25 years of experience meeting the legal needs of New York’s individuals, families, and home loan modification New Yorker’s. Our firm offers services in home loan modification, preparing your documents and requirements for a New York home loan modification. Obama Home Loan Modification.