While mortgage lenders and banks negotiate on a case by case basis when deciding on eligibility, there are many benefits to considering mortgage modification.

Common mortgage loan modifications benefits are:

• Decreasing the mortgage interest rate: A decrease in the mortgage interest rate lowers your monthly payments. The decrease can be temporary or permanent.
• Forgiving part of the loan amount: The lender agrees to lower the total amount you owe on the loan, which reduces your monthly payments.
• Deferring part of the loan amount, interest-free: The lender defers part of the principal for a period of time, and calculates your mortgage payments based on the remaining principal. This lowers your monthly payments temporarily.
• Giving you more time to pay off the loan: If you have a 30-year mortgage, the lender may extend it to 40 years. This lowers the monthly payments because you are paying off your loan for a longer period of time.

Lenders may also offer:

• Foreclosure delay or moratorium: The lender delays the foreclosure sale to give you more time to work out a solution.
• Forbearance: The lender allows you to stop or reduce your mortgage payments for a period of time.
• Repayment plan: The lender gives you extra time to repay missed payments, usually by adding a portion of the debt to each regular monthly payment until you are caught up.