Frequently Asked Questions about Loan Modifications
When using the option of a Loan Modification, can the lender combine advances and encompass all fees?
Simply put, yes they can. Any legal fees and costs related to the foreclosure on any work completed on the current default can be incorporated into the principal balance which has been modified.
Can the lender have an inspection of the interior performed on the property, if they believe the property’s condition could be cause for concern?
Yes. They may have a review of the property made this enables them to verify that the property does not have any adverse conditions that could cause an impact on the borrower’s ability to make their repayments on the mortgage they are requesting to be modified.
Can late charges be included in the lenders Loan Modification?
Any late fees accrued by the borrower must be waivered by the lender.
What interest rate should the lender use when it comes to the completion of the Loan Modification?
The current Market Rate should be used by the lender when they modify the interest rate; the rate should be defined as and should be no more than 25 basis points more than the current PMMS Primary Mortgage Market Survey.
Will lenders write off the initial asset costs gradually which are outstanding over a three hundred and sixty month period?
This is correct, the unpaid amount must be written off by the lender over that period of time which applies from the first instalments due date which has been agreed after the mortgage has been modified.
Will an escrow analysis be performed by the lender while the Loan Modification is being completed?
All lenders must perform this analysis when the Loan Modification is being performed, this will ensure that the delinquent payments are capitalized and reflect the true escrow requirements needed for the months that are capitalized.
Loan Modification Specialists has over 10 years experience of which thousands of Foreclosure cases have been prevented.
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