If a lender agrees to new loan terms in an attempt to help a homeowner,and the terms of the new agreement are met,this constitutes a

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A loan modification is when a lender agrees to new loan terms in an attempt to help a homeowner, such as reducing the interest rate or changing the terms of repayment. If the homeowner meets the new terms of the agreement, the loan is considered modified. Foreclosure refers to when a lender takes legal action to seize and sell a property due to unpaid debts, while forbearance is when a lender allows the borrower to temporarily postpone or reduce their payments. Cramdown is a legal process that allows a bankruptcy court to reduce the value of a secured loan and restructure the debt.

If a Lender Agrees to New Loan Terms in an Attempt