Finance
In South Carolina, what is a 'loan modification'?
AChanging the property serving as collateral for the loan
BA formal change to the original loan terms (interest rate, payment amount, term) negotiated between lender and borrower, often to prevent foreclosure✓ Correct
CAdding a co-borrower to an existing loan
DRefinancing the loan with a new lender
Explanation
A loan modification is a change to the existing loan terms (reducing the interest rate, extending the term, forgiving arrears) negotiated between lender and borrower. It allows financially distressed borrowers to keep their homes while avoiding the costs of foreclosure.
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