An unusually prolonged or complex illness, esp. one that causes severe organ dysfunction or threatens life. Catastrophic illnesses often make exceptional demands on patients, caregivers, families, and health care resources.
However, if your current mortgage lender has discounted your current mortgage loan balance, the mandatory waiting period after loan modification is 12 months from the effective date of the loan modification with a 12 months on time payment history which is reflected on your credit report.
With a loan modification, the lender may agree to do one of more of the following to reduce your monthly payment: reduce the interest rate; convert from a variable interest rate to a fixed interest rate, or; extend of the length of the term of the loan. Generally, to be eligible for a loan modification, you must: show that you cannot make your current mortgage payment due to a financial hardship; complete a trial period to demonstrate you can afford the new monthly amount, and