Mortgage Modifications Get Trial Period
June 11, 2009
There is an interesting new twist to the whole loan modification procedure. Mortgage modifications may require a three-month trial period in order to test the borrower’s ability to make payments under the modified loan structure. If the borrower meets the requirements during this trial period then the loan modification will be finalized. During the trial period a loan could be reported as delinquent and in most cases the foreclosure process will be suspended.
For the most part, this trial period is specific only to the federal government’s Home Affordable Modification program. However, expect modification programs that fall outside of the federal government’s program to implement the trial period as well.
In a recent article by Marcie Geffner of Bankrate.com, she describes 10 things that a borrower needs to know about the trial period. To read more about those ten items, please click on this link, Modifying Mortgage Trial Period
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
CORPORATE BROKER’S LICENSE #01858172