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what are common pratices of modifications

Posted on: 10th May, 2009 03:22 pm
Is it a common practice for banks to attach a 3 year amortarization ballon during modification. it seems that would put me in worse situation than I am in now because they could ask for large amount of money in 3 years and the modification only takes 100.00 off my current mortage of 987.00 my interest rate is 6.5 and they are offering me 5.25 . I am 3 months behind on mortage so they have offered this mofidication . they will bring me current on mortage but I have to come up with 3 months escrow and may mortage. 3 yr amortariztion with ballon the term is 30 years. It doesnt sound like they are trying to help me that
much. Any feed back would be very helpful
Hi mpatterson!

Welcome to forums!

As far as I know, it is not a common practice for banks to attach a 3 year amortization balloon during modification. You can speak to your lender and clarify the issue. You should even negotiate with the lender to check if he can offer you a different modification plan.

Feel free to ask if you have further queries.

Sussane
Posted on: 10th May, 2009 07:46 pm
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