When the terms of an original loan have been negotiated and changed, the revised loan is considered a restructured loan. If a borrower is experiencing financial difficulties, he or she may work with the lender to restructure the loan. In this case, the new terms may extend the repayment period and lower the monthly payment amount. Typically, a restructured loan allows borrowers to avoid default. It is also referred to as a rescheduled loan. In today's economy, when many home owners are facing foreclosure, restructured loans are becoming popular. During the negotiation process, the parties agree on a new monthly payment amount that reasonably fits within the borrower's current budget, and the new terms reflect the change. In some instances, borrowers may be offered an interest rate that is lower than the rate on the original loan.