Loan Modification
/ˈloʊn ˌmɒdɪfɪˈkeɪʃən/
Definitions
- (n.) A mutually agreed change to the terms of an existing loan contract, typically to provide relief to the borrower facing financial hardship.
The lender offered a loan modification to reduce the monthly payments and avoid foreclosure.
Forms
- loan modifications
Related terms
See also
Commentary
Loan modifications are often used in contexts where borrowers risk default; clear documentation and lender consent are essential for enforceability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.