The stated purpose for drafting the Mortgage Modifications Act is to resolve the. Must meet all of following criteria: • Loss of income or increase in expenses;.• Currently employed;. To apply for a loan modification, you will be required to submit a "complete loss mitigation package. The mortgage modification agreement is a legal document between a lender and borrower to change an existing loan's terms. Delivering Modified Loans ; 259. Depending on the program, you may need to submit a "hardship letter" that details your situation in narrative form. Step 5: Complete trial payments. The Modification Agreement defines the changes to the home loan.