This Is A Test Loan Adjustment
A Trial affiliate mortgage modification is when your lender/servicer puts you as a homeowner into a temporary Note Modification while they evaluate your paperwork to see if you qualify for a permanent Mortgage Restructuring. The temporary terms are usually for a period of three months. In general, the Mortgage payments should be less than what you are currently paying. Keep in mind that the trial Note Adjustment terms will not be the same as the permanent Mortgage workout florida loan modification terms.
One thing that you have to watch out for is during the trial period you must make all of your payments on time. This is a standard condition of the trial period, else they will deny your request for a Mortgage Restructuring and you may find yourself in foreclosure soon.
These types of temporary Note Modification programs are all a little different depending on the lender and what state you are in. So I will provide a few more tips for those that are being offered such programs and these are general guidelines only.
One of the key expectations is the homeowner will receive upfront trail Loan Workout paperwork directly from the lender outlining all the terms before ever making a trial payment. You will need to sign the trial papers and send that plus the first trial payment back to the mortgage bank.
While the trial period is moving forward, the mortgage bank will fully evaluate your Mortgage Modification package to determine if you qualify. If you are working with an Attorney, the full Note Adjustment package would have been submitted to the lender prior to the trial period. In these cases, the reputable Attorneys already know you will qualify and it is a matter of giving the bank time to evaluate everything.
For the most part, I think these trial periods are more of a stall tactic for the lender to get money from the TARP funds immediately instead of waiting for the permanent Note Adjustment program. Remember the permanent program terms take 60 to 90 days, and the trial period begins soon after discussions with the lender. This gives the lender money upfront and more time to stall and commit to a Mortgage Adjustment. Of course, the lender are working in their best interest and not the homeowners.
If you have tried a Mortgage Restructuring on your own, usually the bank takes that information over the phone and later offers the trial Loan Adjustment. If this is the case, the process above is not always followed. In most cases, the financial institution have verbally qualified you bases on a phone conversation or partial paperwork sent over by the homeowner. I would be very leery of any verbal commitments by the servicer, “buyers beware”.
Many times the homeowner never receives the upfront trial Note Workout paperwork and is only going on a verbal by someone in the bank. Then after the trial period, they never receive any Mortgage Workout documents and find their home being foreclosed on. This happens sometimes in part because the mortgage company verbal qualifications did not match up with the paperwork sent over by the homeowner during the trial period.
Unfortunately, the financial institutions are taking advantage of homeowners in this situation, in part because homeowners just don’t know what to expect or even demand. So, if this is happening to you, you know now what to ask for, and that is upfront trial Note Adjustment papers and final permanent papers.
If you are not getting these papers as described, then I say buyer beware. You can contact a Note Modification Attorney at that point or just ride it out and see what happens. Just a quick note on the Mortgage Workout Attorney, the reputable ones are almost 100% successful with permanent workout programs after the trial period, so feel confident that you’re in good hands.
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