Is Loan Mod considered "Refinance"

[jimbojones35]

Does anyone know if a loan modification is considered a form of "refinance"? I ask because even if after getting my loans (I have a first and second) modified, I end up having to do a short sale in CA, do my loans became recourse loans? I know that section 580b states that if one does NOT refinance their purchase money loans, that they are considered non-recourse. However, it's not clear to me regarding a loan modification and if that essentially equates to a "refinance".

Any advice or feedback from anyone is greatly appreciated. Thank You!

[B Stevens]

I believe it depends on what type of modification you received. Temporary or permanent. My loan mod is only for 60 months. The length and conditions were not changed so it is more of a temporary alteration.

[caldwellb02]

I think we need Moe or Evan on this one. It's a good question.

[jimbojones35]

Thanks for replies so far. I'm really worried about accepting any loan modification offers if it ruins my ability to do a short sale without recouse (the lender's ability to come after us for the shortfall). My inkling is that a loan modification that is temporary and doesn't change the terms of the loans wouldn't be considered a refinance (under wholly new and better terms).

[SillyWorld]

A Modifacation can be cancled at anytime for any reason by the Lender, it is to be temp, not perm even if it says for the life of the loan, if new Docs are never signed and stating the Loan was streamlined to new Modifacation, and all new loan docs resigned, with servicer and investor, then your on thin ICE forever, we all know if economy turns around which I doubt for at least a couple of years, but if it were to rebound then I can see all these bankateers cancling all there MODS, unless there is some kind of legislation to protect Modded Loans from lender to do recourse we are all ******...

[jimbojones35]

I heard back from a lawyer friend (who also consulted some other real estate lawyers) and was told that a loan modification could indeed be considered a form of refinancing, with the possibility of losing section 580b protection. So... I am confused as to whether to accept the loan modification or not. I am not married to keeping my house and we are expecting another child in Dec, so know that our expenses (e.g daycare related) will go up. I am now wondering whether pursuing a short sale is a better option. However, if we can get some temporary relief via a loan mod (even if we went down the short sale application route), that would be great if again it is not considered a refinance (btw, we are current on our mortgage to date).

If Moe/Evan could please comment on this/provide any insights, I would greatly appreciate it.
Thanks again.