Loan Modification

Loan modification is a process in which the terms of an existing loan are altered to make it more manageable for the borrower. This can include changes to the interest rate, loan term, or monthly payments. Modifications are often used to prevent foreclosure by adjusting loan terms in response to a borrower’s financial difficulties. For lenders, managing loan modifications effectively can help maintain loan performance and reduce default risk. 

Loan management software can streamline this process by automating the modification workflow, tracking changes, and ensuring accurate updates to loan terms and conditions.