Mortgage Extension Agreement

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A mortgage modification and extension agreement occurs between a lender and a borrower when a borrower has defaulted and is late on the mortgage payments. The modification extends the term of the mortgage, bringing the borrower up to date on the payment schedule when the lender forgives some missed or late payments.


A mortgage extension agreement must be agreed to by both the lender and the borrower. Once the paperwork is drafted, both parties must sign off on the agreement in front of a notary for it to be enforceable or ratified. Once the document is executed, the borrower will receive a new statement with the loan terms and adjusted payoff date.


Some loan extension agreements will come with no fee to the borrower. However, if the borrower is near to foreclosure, the lender might require a portion of late fees and past due payments to be made upon signing the agreement. This will vary from lender to lender.

Time Frame

The time frame to receive a mortgage extension is also variable depending on the lender and the amount of backlog in its loss mitigation department. On average, however, large lenders like Wells Fargo will take approximately six weeks to review a loan modification and extension application before moving forward with the paperwork.


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