Loan modifications have been popping up in record numbers since the subprime mortgage industry has caused a nationwide shakeup of the mortgage industry. A loan mod changes the existing mortgage’s terms without the need for a complete refinance. It is considered the best way for borrowers to work with an existing loan to avoid foreclosure and remain in their home.

In return, the lender agrees to not blemish the credit profile of the homeowner and in addition agrees to accept the declarations of the borrower with respect to his ability to make future mortgage payments in good faith. Homeowners who have undergone this process will do well to remember that this is a one time chance and it is crucial to remember that this may very well be the final chance to save homeownership for this consumer.