The Best Loan Modification Companies

On February 25, 2026 By newsroom Topic: Debt Advice

A loan modification adjusts the terms of an existing mortgage without replacing it with a new one.
Common changes include:
Principal reduction: Reducing the loan balance.
Lower interest rates: Making payments more affordable.
Extending the loan term: Reducing monthly payments by stretching the repayment period.
Switching to a fixed interest rate: Stability in payments.
Postponing payments: Offering temporary relief.

Contact Your Lender: Discuss options that suit your financial situation.
Evaluate Terms: Choose between rate reduction, term extension, or switching to a fixed rate.
Provide Proof of Hardship: Submit documentation showing financial difficulties.
Approval & Changes: If approved, terms are updated to prevent default or foreclosure.

Identifying Information: Name, address, phone number, email, loan account number.
Involuntary Income Reduction: Examples include job loss, illness, or divorce.
Unavoidable Expenses: Medical bills, natural disaster recovery, or childcare costs.
Repayment Plan: Include a clear budget and steps to repay under modified terms.

Flex Modification Program: For Fannie Mae/Freddie Mac loans, aiding delinquent homeowners.
Forbearance Agreement: Temporary payment suspension with accrued interest (short-term solution).
Repayment Plan: Catch up on missed payments over 3-6 months, added to existing monthly dues.

Denial Risk: Application may be denied due to incomplete submissions or insufficient hardship evidence.
Time-Consuming: Process can take 30 days to over a year.
Potential Credit Impact: Modifications might be reported to credit bureaus.

New American Funding: Offers conventional and government-backed loans with loan modification support.
Quicken Loans: FHA, VA, and refinancing options for modifications; minimum credit score of 580 - 620.
Carrington Mortgage Services: Personalized dashboards for easier management; includes modification services.
LendingTree: Nationwide comparison of mortgage loans and modification options.
Community Loan Servicing: Fannie Mae and Freddie Mac-approved servicer with education resources.
Select Portfolio Servicing: Specializes in single-family residential mortgage modifications.
Specialized Loan Servicing: Supports forbearance plans, short sales, and payment suspensions.
Midland Mortgage: Offers customized loan modifications and mortgage assistance programs.
iFreedom Direct: FHA and veteran-focused loan modification services, nationwide.
Trinity Debt Management: Assists with combining payments, reducing interest, and managing debt.

Can You Be Denied?
Yes, due to incomplete applications, lack of hardship proof, or inability to meet modified terms. Appeals are possible within 14 days of denial.
Who Qualifies?
Homeowners must demonstrate financial hardship and the ability to meet modified payments after a trial period.
How Long Does It Last?
Modifications may extend the loan term or keep it unchanged with adjusted payments/rates.
How Long Does the Process Take?
Between 30 days and over a year, depending on circumstances and application completeness.
Does It Affect Credit?
Possibly, depending on how it's reported to credit bureaus. Late payment history may impact scores.

Explore these companies to find a loan modification solution tailored to your needs!