What are the differences between foreclosure defense and loan modification?

Foreclosure defense and loan modification are two strategies used by homeowners in New York to help them manage their mortgages and avoid foreclosure. In a nutshell, foreclosure defense involves a homeowner fighting a foreclosure action in court. This usually occurs when the homeowner believes the lender has not acted in good faith, or has violated the law in some way with regards to the mortgage. Loan modification, on the other hand, is a negotiation between the lender and the borrower to adjust the terms of the loan. This can involve reducing the principal amount owed, lowering the interest rate, extending the loan term, or any combination of the three. The purpose of loan modification is to make the loan more affordable and more manageable for the borrower. Therefore, the key difference between foreclosure defense and loan modification is that foreclosure defense involves the homeowner contesting the foreclosure in court, while loan modification occurs when the two parties come to a mutual agreement on more favorable terms for the loan.

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