Posted on: 06th Feb, 2009 09:13 pm
I applied for a loan modification when I fell behind on my payments last year. My 2nd mortgage approved and gave me a reasonable monthly payment. My first mortgage company put me in a forberance payment until Feb 11 and today received the congratulations letter stating theyhave approved my mod but they increased my regular payments by almost $400 plus they want to add the Escrow acct to pay taxes and insurance. And to make things worse I received the approval letter today which is Friday evening and its due on Monday! That basically gives me no time to really review it. Can they do that? make someone make a decisionin one day? Also is there a way to fight and get the escrow account removed from a loan mod since I already have and pay the house insurance myself and my property taxes?
Hi Joh,
The first lender had suspended your payments for a time period so that you could cope up with your hardship. It did not forgive your payments. Thus, as the forbearance period is over he will be charging you a certain extra amount so that the previous dues are cleared.
As far as the time is concerned, I would suggest you to speak to the lender and see if you can negotiate with him and get few more days to pay the dues. Though you are paying the property taxes and insurance yourself, once the escrow account is created, it will be paid from that account and you will not have to bother about it.
The first lender had suspended your payments for a time period so that you could cope up with your hardship. It did not forgive your payments. Thus, as the forbearance period is over he will be charging you a certain extra amount so that the previous dues are cleared.
As far as the time is concerned, I would suggest you to speak to the lender and see if you can negotiate with him and get few more days to pay the dues. Though you are paying the property taxes and insurance yourself, once the escrow account is created, it will be paid from that account and you will not have to bother about it.