Lenders extend modified mortgage loans to 40 yearsBanking institutions and mortgage companies continue to be inundated with mortgage modification applications as a record number of Americans try to stave off foreclosure. But many who receive permanent modfications are part of a new trend that allows lenders to extend a homeowner's repayment period to 40 years.Citing data from the federal Making Home Affordable Program, the Orlando Sentinel reports that nearly half of the 390,000 mortgages that received permanent modifications also saw their mortgage loans extended from 30 years to 40 years. Although these extensions may be instrumental in setting lower monthly payments and preventing foreclosure, many citizens and lenders alike are dismayed at the length of the loan terms. "If you're 60 and you're in a 40-year note, you're really just renting it from the bank, and you're paying more than you would from someone else you could be renting from. This is what the car dealers sell - they sell payments - that's what the mortgage industry has gotten into," attorney Matt Englett told the newspaper. Consumers who opt to modify their mortgage loans should make sure they understand how the move will impact their credit score and loan terms prior to completing the process. 
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