A loan modification company , also known as a mortgage modification company, is a business that helps homeowners modify the terms of their home loans or mortgages . When a mortgage is modified, the original terms of the home loan contract between a lender and a borrower are renegotiated and then altered, usually in the favor of the borrower.
Many homeowners choose to get modifications to their home loans when they are struggling to pay their mortgages or hope to avoid foreclosure . In order to expedite the loan modification process, homeowners may rely on the services of a local loan modification company. By using working with home loaners changes, homeowners receive the advice, resources and services they need to obtain the best possible terms for their modification while avoiding scams, which are prevalent in the loan modification industry. ” [ Citation needed ]
Loan Modification Terms
Homeowners who successfully obtain loan modifications while working with a loan modification may: 
- Reduce interest rates
- Reduce main
- Reduce penalties and late fees
- Increase the length of loan terms
Additionally, homeowners who are facing foreclosure may be able to remain in possession of their homes if they work with their lenders to modify their mortgage. Loan modification can also make homeowners’ monthly loan payments more affordable.
Loan Modification Programs and Mortgage Modification Companies
Loan modification programs are offered by loan modification companies and can be very helpful to homeowners who are struggling with their mortgages. Many of these programs enable homeowners to pay zero advance fees, reduce monthly mortgage payments and stop foreclosure. Loan modification companies can also inform homeowners of federal programs, which may be advantageous.
FDIC Loan Modification Program (FDIC Loan Modification Program). However, homeowners must meet government mandated eligibility requirements before they can enroll. The program offered by the FDIC has two main goals: 
1) Protecting investors ‘interests … 2) Protecting investors’ interests …
Another more recent program is the Homeowner Affordability and Stability Plan (HASP). On February 18, 2009, President Barack Obama announced this $ 75 trillion initiative, which has affordable housing for all US residents. The HASP is a comprehensive and cost-effective mortgage loan. 
As part of the HASP, there are 3 distinct programs depending on borrower needs: 
- Home Affordable Modification Program : HAMP
- Home Affordable Refinance Program : HARP
- Home Affordable Foreclosure Alternatives: HAFA
Loan Modification Software Companies
Loan modification software companies have been developed in order to be able to handle the demand for proper analysis. Loan modification software companies.
- Loan Modification Company Software: Software for business processes. These range from Customer Relationship Manager (CRM), to online portals and also internal analysis.