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Returning Member
posted Jun 1, 2019 12:32:21 AM

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

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1 Best answer
New Member
Jun 1, 2019 12:32:23 AM

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.
  • 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:

3 Replies
New Member
Jun 1, 2019 12:32:23 AM

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.
  • 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:

New Member
Jun 1, 2019 12:32:27 AM

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

New Member
Jun 1, 2019 12:32:29 AM

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.