January 23, 2019

Should I modify my mortgage?

A lot of my short sale clients have either considered a mortgage modification or been turned down for one by the time they have made the decision to move forward with a short sale.


In a mortgage modification the lender makes permanent changes to the terms of your home loan resulting in a more affordable payment. Keep in mind that while a modification will reduce your payment, it will not reduce the amount you owe on the property. In fact, in many instances the amount you owe on the loan will actually increase the amount or length of your loan.

This is the main reason most mortgage modifications ultimately fail. Loan modifications are not a long term solution for anyone who owes more on their home than their home could sell for (owners with negative equity).

piiciture of home floating in water


A loan modification may be a good solution for those who:

  • Can not afford the current mortgage payments
  • Wish to avoid Florida foreclosure
  • Have a stable financial situation (including steady employment) to support the new payment amount indefinitely
  • Do not have significant negative equity in the home, or are prepared stay in the home for many more years to overcome a heavy negative equity situation

If you owe much more than your home could presently sell for (or will after a modification), and believe there is a possibility you may want to move within a few years time, a loan modification is not likely to be a good long term solution for you.

A better alternative in this case is almost always a short sale

​Article adapted from: https://reidrealestategroup.com/should-i-modify-my-loan/

I want to thank you again for taking care of everything, I received stacks of letters from the two mortgage companies with threats and pleads for me to contact them and I ignored it and left everything in your worthy hands. The other realtor at the closing said that he was worried because usually short sales don't work out, and that this is his first successful one. I told him that I found you on google and I was told that you are the best in the state for short sales, and that you proved that to be true. A huge burden has definitely been lifted and all of the credit goes to you. Thanks again!


Last Updated on January 14, 2021 by Minna Reid

Minna Reid

Minna Reid is a Broker Associate at Killebrew & Company Realty Inc, serving Jacksonville, Florida.

Click Here to Leave a Comment Below

6 WAYS TO STOP YOUR FLORIDA FORECLOSURE TODAY! - My Florida Home Sale - January 13, 2021 Reply

[…] loan modification is a permanent change to your mortgage that may lower your payments and the delinquent payments may […]

Is your mortgage forbearance ending? Know your options! - My Florida Home Sale - January 14, 2021 Reply

[…] the forbearance and/or resume regular mortgage payments, you can request a loan modification. A loan modification is a permanent change to the terms of your mortgage that may make it more […]

How can I save my home from foreclosure? - My Florida Home Sale - January 14, 2021 Reply

[…] stay involved in your case. If you can bring the loan current, or come up with a workout such as a loan modification with the lender, you may be able to stop the foreclosure and keep the home. If you are unable to […]

Leave a Reply: