Beware of the trial loan modification | Maine Loan Modifications

Most homeowners are offered only trial modifications if they meet the strict requirements in qualifying for a loan modification. However, don’t jump for joy before reading the fine print, as most loan modifications extended are not permanent. Here are three reasons to NOT CONSIDER a trial modification:

1. The loan modification requires 3 on time payments known as “trial payments” in order to qualify for a long lasting modification. The bad part is this does nothing to stop the foreclosure process, nothing to repair credit, and provides no certainty EVEN IF the payments are made on time.

2. NONE of these trial payments are applied to the outstanding loan balance! They are merely put aside in a “suspense account” while the lender waits for you to drop out or denies your application. Essentially you are throwing money into the abyss, while hoping to get lucky.

3. You have no direction, no sense of certainty and no satisfactory resolution to your mortgage default. The foreclosure clock is still ticking, the sheriff will still inevitably come serve you a foreclosure lawsuit.

While a loan modification is the goal of most homeowners fighting to remain in their home, sometimes a Loan modification offered by a nefarious lender is the greater of two evils. The devil is in the details, after all. Read the fine print.

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