Can your payment and APR stay the same with a modifcation?
Date: Thu, 08/06/2009 - 11:34
My husband and I have been struggling with our mortgage for over a year to make the payment. We are currently one month behind. We did apply with our lender for modification. My lender told me we were approved but our payment and APR would stay the same. I thought a modification was to help a home owner lower their payment. My lender told me the modifcation we were approved for would bring our loan current with our next payment due the month after next. We would have to pay 700 dollars to have the paperwork processed. My thinking is where the payment amt and APR are remaining the same is that we will fall into the same cycle of having the same problems of not being able pay the mortgage that we are having now. Is what my lender doing a true modification to help me?
Quote:I thought a modification was to help a home owner lower th
Quote:
I thought a modification was to help a home owner lower their payment. |
And you have thought it right. :) But at the same time the lender is forgiving your past dues on the loan and therefore the APR and payment have remained the same. This is also a form of loan modification.
Now, you can negotiate or cancel the deal if you think it wouldn't be beneficial for you. You may also contact a loss mitigation expert who can negotiate the deal on your behalf.
