A loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.

Mortgage modification is a permanent change to one or more of the mortgage terms, such as an increase in the total amount due to include the amount of the delinquency, an extension of the length of time the borrower has to repay or a change in the interest rate to achieve a payment the borrower can afford. Partial claim is a loss mitigation option available only to borrowers with FHA-insured loans.