wer ▁s ells ▁the ▁property ▁before ▁the ▁mort g age ▁is ▁paid - off , ▁the ▁un pa id ▁balance ▁of ▁the ▁mort g age ▁is ▁paid ▁to ▁the ▁l ender ▁to ▁release ▁the ▁li en . ▁ ▁Any ▁change ▁to ▁the ▁mort g age ▁terms ▁is ▁a ▁modification . ▁Ch anges ▁may ▁include ▁any ▁of ▁the ▁following : ▁a ▁reduction ▁of ▁the ▁yield ▁( comm only ▁referred ▁to ▁as ▁the ▁interest ▁rate ), ▁an ▁extension ▁of ▁the ▁payment ▁term ▁( ex . ▁extending ▁a ▁ 3 0 - year ▁term ▁to ▁a ▁ 4 0 - year ▁term ), ▁or ▁a ▁reduction ▁of ▁the ▁principal ▁balance ▁of ▁the ▁loan . ▁ ▁In ▁the ▁United ▁States ▁Following ▁the ▁ 2 0 0 7 ▁real ▁estate ▁re cess ion , ▁the ▁government ▁mand ated ▁program , ▁M aking ▁Home ▁Aff ord able ▁( M HA ), ▁and ▁its ▁loan ▁modification ▁aspect , ▁Home ▁Aff ord able ▁Mod ification ▁Program ▁( HA MP ) ▁became ▁the ▁answer ▁for ▁both ▁the ▁struggling ▁bor ro wer ▁and ▁the ▁l ender . ▁ ▁The ▁l ender ▁is ▁motiv ated ▁to ▁offer ▁modification ▁under ▁this ▁Program ▁by ▁the ▁expectation ▁that ▁a ▁loan ▁in ▁default ▁will ▁become ▁a ▁performing ▁( current ) ▁loan ▁which ▁will ▁be ▁more ▁valuable ▁than ▁the ▁proceed s ▁obtained ▁from ▁a ▁forec los ure ▁sale , ▁along ▁with ▁rece ipt ▁of ▁financial ▁in cent ives ▁from ▁the ▁government . ▁▁ ▁The ▁bor ro wer , ▁on ▁the ▁other ▁hand , ▁receives ▁a ▁fixed ▁interest ▁rate ,