Not sure whether to believe my brother-in-law, I need some input PLEASE!!!

[optionARM]

Hello all!!

My brother in law has been a real estate agent in south Orange County, an affluent area, for over 15 years and upon talking to other family members has said that a loan modification is just another name for a refinance. He states that there is no way that a lender is going to reduce a consumer's loan balance, if they did they would be losing money left and right. By changing the terms of the loan (interest rate, length of term) they call it a modificaton but there is no reduction in the balance of the loan.

my question...is he correct? Have people on this forum had their loan balances reduced as a result of a modification? I am doing the research because I am considdering a loan modification and am trying to weed out the bad info.

Thank you in advance for your comments!!

[SillyWorld]

Yes plenty here have gotten mods of Loan interest rate reduced for the life of the already set loan, like I am after is a 2% for the rest of my term almost ready just need to push Citi of a HUGE Cliff

[SillyWorld]

And it all depends on your situation, like if the bank sells your Loan they loose 30 years of interest, or if you go to another bank they loose there interest, so why not do a mod meaning there is no changes to current contract other than maybe new lenght of term, or adding unpaid late payments and fees to loan or back of the loan they make out like taking CANY from a baby