This is post about how mortgage modification works. It can lies on the following two steps as described as under.

The Borrower Requests the Modification :-
Loan modifications for mortgage loans used to be a quick way for borrowers to request a lower interest rate without going through a complete refinance. Not all mortgage companies offered loan modifications, and those that did offered them for a fee--and usually only to borrowers who had mortgages that hadn't already been packaged and sold to another company.

The Lender Considers the Request :-
Mortgage lenders do not have to automatically approve a request for a loan modification. Many lenders have stringent guidelines regarding who can be approved for a modification and who cannot, even if the homeowner is facing foreclosure..

After that loan company makes the decision whether to approve or deny the modification request.

Thanks.

I agree with you Soni. IIn my opinion any loan modification changes the original loan term by mutual written agreement. And the point that you share with us is Mortgage lenders do not have to automatically approve a request for a loan modification. Absolutely it is the true line.