What does loan modification typically aim to achieve for borrowers?

Loan modification primarily aims to make payments more manageable for borrowers facing financial difficulties. This process involves altering the existing terms of a loan to better fit the borrower's current financial situation. Common adjustments may include reducing the monthly payment amount by extending the loan term or lowering the interest rate. The objective is to assist borrowers in maintaining their home and avoiding foreclosure by ensuring that their monthly payments are affordable.

Choosing this option highlights the primary intent of loan modification, which is to provide relief and support to those struggling economically rather than changing fundamental aspects such as the loan amount, increasing payment obligations, or shifting property ownership. Understanding this can help borrowers know how loan modification can serve as a lifeline during financial challenges.