Is a home loan modification the same as refinancing your home?

[HelenaC · Accepted solution]

No, they are not the same.

•  A refinance replaces the existing mortgage with a new loan with a lower rate, and/or more favorable terms, such as a fixed rate loan versus an adjustable one. It is a more permanent solution than most loan modifications, and usually offers greater advantages.

• A loan modification is when a lender discounts (reduces) the principal balance of a loan because you pay it off early, or agrees to a loan modification (a “workout”) that includes a reduction in the principal balance of a loan, the amount of the discount or the amount of principal reduction is canceled debt. See Why did I get a 1099-C from my mortgage company?

Related information:

• IRS Publication 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments
• Can I exclude my 1099-C from my taxable income?
  
• How do I enter a 1099-C?

[ezme777]

I was just and a loan modification and I received a cancellation of debtI need to know please how do I file this H&R Block are having a hard time figuring out if I owe money or if I'm exempt or excluded I need help please thank you

[ezme777]

Don't know if my question went through need to help figuring out about a cancellation of debt through a loan modification .  H&R Block are having a hard time figuring it out if I owe money or if I'm exempt or excluded from the debt.