What is the process called when a lender modifies the terms of a mortgage without refinancing?

The process of changing the terms of a mortgage without refinancing is known as modification. This term specifically refers to altering the original loan agreement, which can involve adjusting factors such as the interest rate, monthly payment amount, or loan duration. A modification is typically pursued when a borrower is having difficulty making their payments, and it aims to make the mortgage more affordable while also avoiding foreclosure.

In this context, other terms provided, such as amendment, adjustment, and renegotiation, do not capture the same legal or procedural implications that 'modification' has in the mortgage context. An amendment often refers to a formal change to a document but doesn't specifically pertain to mortgages. Adjustment can imply a variety of changes but lacks the formal recognition in lending as modification does. Renegotiation suggests a broader discussion of terms but does not necessarily equate to a formal and documented change in the existing loan agreement. Therefore, modification is the correct term to describe this important process in real estate finance.