What's The Difference Between A Refinance And A Loan Modification?

Alan Zibel investigates the government's much ballyhooed efforts to help home owners with their mortgages.

So far it appears these plans will help far fewer home owners than intended.

These government plans require lots of paperwork and regulation and lenders have been slow to step up and hire people to process all this.

Up to three million home owners might get some type of help.

From the AP: More than 358,000 foreclosure-related filings were recorded in August, RealtyTrac Inc. reported Thursday. That number was up 18 percent from a year ago and flat from a month earlier.

When you refinance your home loan, you sign a new contract with your lender. A loan modification involves changes to the existing contract such as lowering the interest rate or extending the term from 30 years to 40.