subject: What happends after my 3 month trial modification? [print this page] What happends after my 3 month trial modification?
You submitted your loan modification application to your lender and it has been months since you have heard anything. Finally, you receive a phone call from the lender you think to yourself "oh thank goodness!". The nice representative on the other line says "you have been approved for the government trial modification." She starts reading off her script and goes right into her spiel. You sit and listen trying to grasp what it is you are suppose to do, you try to interject but she just rambles over you. Finally, she asks "do you have any questions?" and before you can think quick enough, she hangs up and is gone! With a little frustration you sit and try to remember what she said.
If this sounds all too familiar, relax take a deep breath. I will break it down so you can understand what to expect and what will happen next.
The three month trial modification works like this:
- You will make 3 trial payments of a reduced mortgage payment based on your financial information you submitted to the lender.
- There is NO GRACE PERIOD
- This payment will include your taxes and insurance
- If you miss a payment this will boot you out of the government program; you will not be able to reapply for this program.
- Once you have completed making your 3rd trial modification payment you should do the following:
o Call your lender ask them what you should do next
o You may be asked to resubmit 90% of all the documentation you have already sent.
If you are wondering why you will need to resubmit your financial information over again, is simply because the lender has to verify your income and assets before finalizing the modification. Remember the trial modification, is just that a TRIAL, not a finalized modification. The government HAMP program is structured this way to ensure you can resume making mortgage payments on time. Once you have completed the trial payments and have resubmitted your financial information you should then receive again a phone call and or a packet in the mail with your final modification terms. This packet will disclose your final rate and new term. Congratulate yourself on having successfully modified your mortgage loan!
