Under certain circumstances a Mortgage Modification is an option for Loss Mitigation. Approval of a Mortgage Modification takes the following into account:
- The terms of the Note and Mortgage, and other applicable loan documents
- The equity ratios of the property
- The status of title
- The borrowers current financial situation
In the event the appropriate criteria is met, there are times when a Mortgage Modification is a viable option of Loss Mitigation. In those instances, lenders may have a variety of options which enable a loan to be restructured and modified. In these cases, the modified loan retains the same lien priority, is no longer in a default status and becomes a performing loan.