If a borrower has incurred a long term financial hardship, our office can assist in supplying the appropriate information to the lender to take the appropriate measures to modify the term(s) of your mortgage. A loan modification is a legal agreement entered into between a homeowner and his or her lender pursuant to which the lender agrees to renegotiate the terms of the existing loan. This often results in a lower monthly payment that the homeowner can afford thereby permitting the homeowner to avoid foreclosure and keep their home. Depending on the lender and the individual circumstances of the homeowner, there are a variety of possible available options including reduction the effective interest rate, modifying the loan from an adjustable rate mortgage (ARM) to a fixed rate loan, extending the maturity date or reduction of the outstanding principal balance. Loan modifications can take time to negotiate depending on the particular lender, accordingly it is important for a homeowner to seek timely assistance so as to preserve their eligibility for such programs.