After being hit by the sub-prime mortgage crisis, the real estate industry has become quite panic driven. Today, Foreclosures, Short Sales and Loan Modifications have become the prime lexicons of real estate dictionary. Loan modification is an arrangement made by the lender when the borrower keeps defaulting on the monthly installment for long. Instead of providing moratoriums, he makes a modification on the loan altering the amount of installment, changing the rate of interest or stretching the payment cycle in order to relieve the borrower.

Today, the loan modification quotes have become a little stringent again as the economy is endeavoring to shape back, rising from the doldrums of recession period. During the mortgage crisis, lenders had made up their mind to make the loan modification quotes as lenient as possible. There is a processing fee which needs to be paid. It is clearly mentioned in the loan modification quotes.