refinancing and restructuring

When you replace your existing mortgage with a new loan under different terms, then it is called refinancing. The term restructuring is normally used in UK. It basically refers to mortgage modification. It is the process of modifying the terms of mortgage. Normally, individuals go for refinancing and mortgage modification when they are not able to make mortgage payments.

Hey Jenny... People go for loan modification or mortgage restructuring when they are facing hardship in paying off their dues. If they are already in a financial hardship or they don't have equity in their property, then they can't refinance their mortgages. Borrowers can only refinance their mortgage when they have a stable financial situation, excellent credit scores and equity in their property.