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FIRST LOAN MODIFICATION AGREEMENT by Pioneer Financial  Form

FIRST LOAN MODIFICATION AGREEMENT by Pioneer Financial Form

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welcome to county office your ultimate guide to local government services and public records let's get started what is loan modification agreement a loan modification agreement is a legal contract it Alters the original terms of a loan this can involve changes to the interest rate it may also extend the loan term sometimes it reduces the principal balance loan modifications are often used to help borrowers they make loan payments more man manable this can prevent foreclosure it is a tool for those facing financial hardship the process begins with an application borrowers must provide financial information this includes income expenses and assets lenders review this information they then decide if a modification is possible approval is not guaranteed lenders assess the borrower ability to pay they consider the current market value of the property they also look at the original loan terms if approved the lender drafts a new agreement this document outlines the new terms borrowers

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