Loan modification: You and your loan servicer agree to permanently change one or more of the terms of the mortgage contract to make your payments more manageable for you. Modifications may include reducing the interest rate, extending the term of the loan, or adding missed payments to the loan balance.

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The Mortgage Debacle, The Market & The Fallout! Bear Stearns Charges Linked To Subprime Debacle. They became the first executives to be charged criminally in the wake of the subprime market debacle. And the fallout is beginning to spread.

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