Modifying a loan (recast, restructure, deferment, forbearance)

Apply a loan modification that regenerates the schedule forward without restarting the loan.

Updated June 19, 2026

On a loan, Modify Loan ▾ opens a menu with each modification as its own option. Every mod records a point on the loan's timeline and regenerates the unpaid schedule forward from the current paid position — paid rows are preserved and the loan never restarts at payment 1.

The types

  • Recast — re-amortize from the current balance over the remaining term after a large curtailment. Rate and payoff date hold; the payment drops.
  • Restructure — change the rate and/or remaining term; the future schedule rebuilds from the current balance.
  • Deferment / Forbearance — pause N payments, then pick how interest is handled: accrue & capitalize (interest folds into principal), move to the back (term extends, payment holds), or simple push (dates shift, no extra interest).
  • Custom — set any combination of new rate, remaining term, and next-due date, with a free-text field for the exact arrangement you agreed with the borrower.

Every modification needs a note and is recorded in the loan's audit log. Closed, paid-off, and foreclosed loans can't be modified.

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Modifying a loan (recast, restructure, deferment, forbearance) · NoteHarbor Help