Posted on: 03rd Feb, 2011 04:19 pm
Hi- thank you in advance for helping me with this question. So here goes: I have finally-after 2 years- received an approval for a modify. For simplicity's sake the modified loan amount is now 40,000 and they have deferred 8,000 (let's say original loan was for 48,000.) When and how does this 8,000 get paid by me? There is no clear cut answer to this in the docs they sent me and when I call them, I am more confused than before I called... please help
Hi pharris,
You need to check out whether or not the lender has forgiven the deferred amount of $8000. If the lender has forgiven the amount, then you won't have to pay it. However, if the lender has not forgiven the amount, then it will be added to loan and you may have to pay it off at the end of the loan term.
Thanks
You need to check out whether or not the lender has forgiven the deferred amount of $8000. If the lender has forgiven the amount, then you won't have to pay it. However, if the lender has not forgiven the amount, then it will be added to loan and you may have to pay it off at the end of the loan term.
Thanks
In most cases past due amounts that may be due to the lender will be capitalized back into the loan over the life of the loan. Sometimes lenders will defer the past due amount to the end of the loan and unless you sell the home or pay it off you would have to pay it til then.
It should say it in the loan modification documents somewhere by law they have to state what is happening to the past due. If you cannot find it on the agreement call your lender and ask them to point it out.
It should say it in the loan modification documents somewhere by law they have to state what is happening to the past due. If you cannot find it on the agreement call your lender and ask them to point it out.