HUD, or Housing for Urban Development, is a government agency that manages housing in the United States, providing services that ensure fair housing practices throughout the country. One of HUD's most noted offerings is its loan modification, called HUD loan modification, which is a program that allows modifications for those who, for various reasons, are unable to pay their mortgages. Additionally, HUD offers many tips for homeowners that need to find alternatives to foreclosure, outside the offerings of the lender.

According to the regulations set out by HUDand the Make Home Affordable Program, loan modification should be operated in several steps, as follows: First, the mortgagee will assess the financial status of the mortgagor, in order to determine their eligibility for loan modification. At this point, the mortgagee should also analyze escrow on the loan and its arrears. Proceeding on, the the home itself will need to be assessed regarding its value and condition. If everything checks out, the mortgagee is at liberty to make a decision and perform loan modification, as long as they remain in compliance with state and federal law for loans.