Thursday, July 6, 2017

What Is Involved In A Trial Mortgage Modification?

When a mortgage gets modified the homeowner and the lender both benefit. The homeowner gets a lower payment, making it more likely that they are able to stay on track with their mortgage payments and the lender gets paid back on their loan rather than having to foreclose. If you are thinking about a modification you need to know how they work, and what to expect once you set the wheels in motion. One thing that may not be on your mind is the possibility that the beginning of your modification includes a trial period. During the trial period you are able to make the lower payments that you will also make once the modification is complete, but the modification will not be final until the modification period ends and the payments are made on time and in full for the duration of the trial modification period.

When a mortgage loan gets modified there may be an initial time period the lender refers to as the trial period. During this time you will:

         Make the payments that you expect to make one the modification is complete. Most trial modifications last about 3 months.
         The lender might report that you are making less than a full payment, be sure to ask this question so you know how your payments are being reported on your credit.
         The purpose of the trial period is so the lender can be assured you have the capability to make the new payment amount. Believe it or not there are instances where even though the payment is lower, it is still out of reach. Lenders do not want to commit to a modification if payment problems will still exist.
For many the trial modification is not an issue, and the payments are made without incident. Once the payments are successfully made for the trial time period, the lender will do a final modification of your mortgage. At that point your lower payments will be official, and you will continue to make the modified payment for the life of your loan. Let us help you find out if a mortgage modification is right for you.

For more information about mortgage loan modifications, call us today or reach us online at We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.

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