Finance
What is a loan modification and when is it used in Nevada?
AThe original loan documentation is modified before signing
BA permanent change to the terms of an existing mortgage loan (interest rate, principal, term) to make payments more affordable — often used to help Nevada homeowners avoid foreclosure✓ Correct
CA second mortgage modifying the first mortgage terms
DA NRED-required change to loan disclosures
Explanation
A loan modification permanently changes the terms of an existing mortgage — reducing the interest rate, extending the term, or reducing principal — to lower monthly payments. During Nevada's foreclosure crisis (2008–2012), loan modifications were extensively used through government programs like HAMP.
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