Which of the following would be considered a form of loss mitigation?

Loan modifications are indeed a form of loss mitigation. Loss mitigation refers to the efforts made by lenders to help borrowers avoid foreclosure or to lessen the impact of a foreclosure when it cannot be prevented. A loan modification typically involves changing the terms of an existing mortgage loan—such as lowering the monthly payments, extending the loan term, or changing the interest rate—to make the loan more manageable for the borrower. This can help them stay in their home, thereby preventing the loss of their property.

In contrast, property tax calculations and appraisal fees are administrative processes related to managing a property and mortgage rather than strategies aimed at addressing borrower distress. Similarly, increasing interest rates would typically exacerbate a borrower's financial situation rather than mitigate losses. Therefore, loan modifications stand out as a proactive measure aimed explicitly at assisting borrowers in financial hardship, making it the correct choice in this context.