Debt Relief Path

Mortgage loan modification

If you're behind on your mortgage or worried you will be, your servicer may be able to change your loan so the payment fits again.

Got a foreclosure notice? Call your mortgage servicer right away and keep paying what you can. You can also get free help from a HUD-approved housing counselor at 800-569-4287. Never stop paying your mortgage because someone tells you to.

What a loan modification is

A loan modification is a permanent change to your mortgage terms, made by your servicer. It can lower the interest rate, extend the term, add missed payments to the balance, or in some cases reduce principal. Most servicers start with a trial period of three or four payments before making it permanent.

Other options your servicer may offer

  • Forbearance: a temporary pause or reduction in payments.
  • Repayment plan: spreading missed payments over several months on top of your regular payment.
  • Partial claim: for FHA loans, missed payments moved into a no-interest second lien due when you sell or refinance.
  • Short sale or deed in lieu: ways to leave the home without a foreclosure on your record.

Watch for mortgage relief scams

Federal rules ban companies that help with loan modifications from charging you any fee before you've received and accepted a written offer from your lender. Walk away from anyone who asks for money up front, guarantees results, tells you to stop paying your lender or to send payments to them, or asks you to sign over your deed.

Who you'll be matched with

Depending on your state and situation, we connect homeowners with HUD-approved housing counseling agencies, licensed attorneys, or licensed mortgage professionals such as Ibex Capital Mortgage when refinancing may be an option. If foreclosure is close, a bankruptcy attorney can explain how Chapter 13 may pause it.

Debt Relief Path is not associated with the government, and our service is not approved by the government or your lender. Even if you use our service, your lender may not agree to change your loan. You may stop doing business with us at any time.

Questions people ask

How long does a loan modification take?

Often 30 to 90 days for a decision after your servicer has a complete application, followed by a trial period. Send every document they ask for promptly and keep copies.

Will a modification hurt my credit?

The missed payments that led to it usually already have. How a modification itself is reported depends on the servicer. It generally does far less damage than a foreclosure.

Can I apply if I'm already in foreclosure?

Yes. Federal servicing rules give extra protections if you submit a complete application well before a scheduled sale. Act as early as you can.

Mortgage loan modification by state