[Moe Bedard]

They don't modify the loan to the current value..........what they do is lower the interest rate, extend the term, and they may offer what is called a principle forbearance which is when they take a portion of the principle and put it at the back end of the loan in a balloon payment that would be due if you were to sell or refinance the property. The amount that is remaining would be amortized at the rate that you get modified to...........but this type of workout is not offered in many cases.........we are mostly just seeing the rate reduction and the loan term extended usually from 30 years to 40 years to lower the payment.

This is why I had suggested to work on this one first..........because if the investor on the second sees that you have the modification in place on your first.........they might be more willing to offer you some type of modification on your second.