My staff and I successfully obtained three loan modifications this week for our clients. We have six more clients who are going into what is called a "trial modification."
Essentially the trial modification period will allow the borrower to make three payments at a reduced payment rate which is supposed be right around what a permanently modified rate should be. If the borrowers are successful, and all the financials stay the same, they should get the modification they are seeking.
HOWEVER, if you are offered a loan modification trial period please read the fine print. Some of the banks are requiring you to give up your rights in bankruptcy, force you to sign a release that you won't sue the bank ever for any things they may have done wrong in the past, or admit that you committed fraud in your original loan application. Please bring your proposed loan modifications and trial repayment plans to an attorney or at the very least read them carefully and KNOW what the contract means!
Thanks for reading
R. Grace Rodriguez is
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