Many mortgage holders, when working a note workout, in CA think they can hop a home Modification for every state. They think, they should be able to skip a note payment just like the one they skipped when they bought their house and when they refinanced. The homeowner, thought wow, skipping a home payment would be great and really help me, so let’s do this home loan note payment. Of course it did not make to me, as there is no free lunch and the homeowner never really skips it; instead the interest is rolled into the new note. In essence, the homeowner has paid the mortgage in advance, but may not really understand that, no matter how many ways you explain it to them.
Posts Tagged ‘temporary loan modification’
What If I Skip A Monthly Loan Payment With A Home Loan Workout?
Saturday, January 2nd, 2010More to know about Trial Loan Modifications
Saturday, October 3rd, 2009
I had previously defined a Trial Loan Modification as a temporary change in loan terms, and in general the temporary period is usually for three months before your loan is permanently modified. I also wrote that the permanent loan modification is usually not the same terms as the modified terms of the trial period. Also don’t forget that you as the homeowner must make all payments on time during the trial period. No payments can be missed; else you default on the trial terms and will thus negate your ability to qualify for a permanent restructure, meaning you will be denied! So, it is very important to make those payments.
What is A Trial Loan Modification
Friday, September 25th, 2009A Trial Loan Modification is when your lender/servicer puts you as a homeowner into a temporary loan modification while they evaluate your paperwork to see if you qualify for a permanent loan restructure.  The temporary terms are usually for a period of three months. In general, the mortgage payments should be less than what you are currently paying. Keep in mind that the trial modification terms will not be the same as the permanent loan workout terms.
