Posted on: 02nd Sep, 2009 07:51 pm
When taking part in a loan modification, are there any restrictions as to when you could sell your home? What actually happens to your balance? I have heard the mortgagor looks at your current tax TRIM notice and does a BPO to gage fair market value in your area to determine what a new "mortgage" could e issued for. What happens to the residual balance left from the original loan?
The restrications can be different for different customers and different lenders
Most of the modification are extending the terms of the loan period, not reducing the principal
Most of the modification are extending the terms of the loan period, not reducing the principal
Hi dawn!
Welcome to forums!
As far as I know, the lender does not restrict you from selling off the property if you are paying your mortgage dues according to loan modification plan. However, once you sell off the property, you would have to pay off the mortgage dues.
In a loan modification, the lender would first judge your financial situation. On basis of that he would decide whether or not he would accept your request. If he accepts your request, he can reduce your interest rate for making the mortgage payments. On the other hand he would increase your loan term by few years so that you ultimately pay off the full loan amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, the lender does not restrict you from selling off the property if you are paying your mortgage dues according to loan modification plan. However, once you sell off the property, you would have to pay off the mortgage dues.
In a loan modification, the lender would first judge your financial situation. On basis of that he would decide whether or not he would accept your request. If he accepts your request, he can reduce your interest rate for making the mortgage payments. On the other hand he would increase your loan term by few years so that you ultimately pay off the full loan amount.
Feel free to ask if you've further queries.
Sussane