What is a mortgage loan modification?

A mortgage loan modification is a change in your loan terms. The modification should be designed to reduce your monthly payment to an amount you can afford.

Modifications come in different forms. Some extend the number of years you have to repay the loan. Others might reduce your interest rate or even reduce your principal to help you make your monthly payments.


Carefully consider what kind of modification addresses your needs best. If you receive a loan modification and you still can’t make the payments, you may lose your home. If you’d like to learn more about your options, talk to a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor. Call the CFPB at 1-855-411-CFPB (2372) to be connected to a HUD-approved housing counselor today. Use our checklist for more information on how to avoid foreclosure.

If you are facing imminent foreclosure or have been served with legal papers, you may also need to consult an attorney. If you need help finding an attorney, you can view this list of legal aid services in your state, or you can find lawyer referrals in your county and state by visiting the American Bar Association website.

Ask CFPB provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically.

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