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Can we trust Provident Funding to process our loan modification

Posted on: 07th Mar, 2011 02:13 pm
We have seen documentaries on Mortgage companies that have agreed to start a mortgage modification but later on after several months the mortgage company foreclosed on the individuals. It seemed that once the mortgage company was aware of a hardship case they used the situation to force a foreclosure. Is there way to keep this scenario from happening..any litigation to use up front?
Hi schowerj!

Welcome to forums!

Unless you're able to convince your lender about your financial hardship and unless you're delinquent on your mortgage payments, lenders will not be ready to offer you loan modification. If you meet all the required criteria of the lender, you'll be able to get a loan modification.

Feel free to ask if you've further queries.

Sussane
Posted on: 07th Mar, 2011 07:51 pm
Thank you so much Sussane. Our scenario is after three layoffs in six years we have wiped out all of our savings and 401k. My present lay off which could last anywhere from 3-12 months makes me want to alert the mortgage company to avoid a surprise foreclosure. We want to use our unemployment payments to make as much of the payment as possible. Our fear is that a mortgage company will not honor the agreement to help us after a certain period of time and forcing us to foreclose.
Can the mortgage company tack those funds onto the overall balance to be paid at a later date?
Can they also eventually covert the interest only loan to fixed rate before it balloons to a higher payment in two years. The upside down value has made standard appraisal type refi unachievable
Posted on: 08th Mar, 2011 05:11 am
Hi schowerj,

Once the mortgage company offers you the loan modification program, it won't suddenly cancel the program and foreclose the property. If they do so, then you will be able to take legal actions against them. The lender cannot convert the loan suddenly without informing you.

Thanks
Posted on: 08th Mar, 2011 08:55 pm
Banks and other financial institutions will often quote rates that are not the true interest rate. Their motive is to make their offering more attractive than it really is.

[URL Deleted as per forum rules. Thanks.]
Posted on: 10th Mar, 2011 01:47 am
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