Posted on: 26th Feb, 2009 05:02 am
We have qualified for a loan modification that dropped our interest rate from 12% to 8%. But we have an arrearage because both of our children have had a lot of surgeries with no insurance, and we could not afford medical and a mortgage. In our mod a section talks about debt forgiveness and right under in the next section it talks abot the deferral of the upb. Can you explain?
Hi acaldwell,
I think your loan modification agreement has a clause which tells you about the principle reduction. In case of a principle reduction, the lender forgives a certain amount of mortgage depending upon your situation. This can be considered as a debt forgiveness.
However, if you do not have any problem, you can quote the exact lines from your loan modification agreement. This can help me in explaining the whole thing.
Take Care.
I think your loan modification agreement has a clause which tells you about the principle reduction. In case of a principle reduction, the lender forgives a certain amount of mortgage depending upon your situation. This can be considered as a debt forgiveness.
However, if you do not have any problem, you can quote the exact lines from your loan modification agreement. This can help me in explaining the whole thing.
Take Care.