A loan modification refinance is a type of loan modification that involves refinancing the loan. When modifying a loan, the servicer may choose that refinancing is the best way to restructure the loan. As an alternative to foreclosure, a loan modification of either refinancing, skipping payments, forgiving part of the loan, or reducing the interest rate may be used to make the mortgage more affordable. If refinancing is the chosen method, the program for loan modification will transform the loan into one that can be reasonably paid. This refinance is likely to lengthen the loan, lower interest rate, and adjust the interest rate either up or down. To apply for a loan modification, homeowners can ask their lender or engage in the program through HUD counseling agencies.