When you get mod, is this now a recourse loan in Cali ???

[CWandSLSat619]

I have been approved a loan mod, and the late payments were added in the loan, so technically I get to keep the money I didn't pay them, So if I kept the money and then they increase the balance of my lona.. Does this now becomes a Recourse loan???? Is there any sign or verbaige in the Loan Mod Docs I should look for that would tell me if this is now a recourse loan???

[CW California]

Don't think so. It's the orginal Deed of Trust.

[CWandSLSat619]

Originally Posted by CW California

Don't think so. It's the orginal Deed of Trust.

Thanks CW, hhmm.. what about the second? If the 2nd modify and tacked the missed payment in the loan, it is still non recourse? I haven't see the docs yet.. but I really want to make sure it is still non recourse...

[hope67]

Originally Posted by CWandSLSat619

Thanks CW, hhmm.. what about the second? If the 2nd modify and tacked the missed payment in the loan, it is still non recourse? I haven't see the docs yet.. but I really want to make sure it is still non recourse...

Based on the new guidelines for the 2nd mortgage, I think that as soon as the modification of the 1st is finalized they automatically modify the second with 1% interest fixed for 5 years. Did they tell you anything about the 2nd modification?

[CW California]

Originally Posted by CWandSLSat619

Thanks CW, hhmm.. what about the second? If the 2nd modify and tacked the missed payment in the loan, it is still non recourse? I haven't see the docs yet.. but I really want to make sure it is still non recourse...

I understand your concerns. I found very little language in my modification documents that would alter anything except the interest rate. Someone on the forum said to watch for clauses that restate the debt. (What ever that means?) The other point that was made was just because the lender says it doesn't make it so. A judge may not agree with them taking away your non recourse rights. All the same you could have an attorney look at it. I personally just don't think if it's purchase money and the same deed of trust that they can change it but I'm no attorney and quite biased too!!

[pattona]

They are just modifying the original terms of the Note (not the deed of Trust which is recorded document), vs a refinance. So unless the lender is willing to do a judicial foreclosure I wouldn't worry about it.

[CWandSLSat619]

Thank you guys for your opinions..... I'm still trying to figure out if the offer is good.... and if it is, yeah i'd pay extra to have a realtor attorney looked at it.

Based on the new guidelines for the 2nd mortgage, I think that as soon as the modification of the 1st is finalized they automatically modify the second with 1% interest fixed for 5 years. Did they tell you anything about the 2nd modification?

Hope, the 2nd has modified me already before and they are offering to modify me again 1% less but not down to 1% does it matter if it's a different lender? also the 1% for 5 yrs.. is taht principal and interest? Thanks!

CW, me too am BIASED!!!! hehehe

[CWandSLSat619]

Originally Posted by pattona

They are just modifying the original terms of the Note (not the deed of Trust which is recorded document), vs a refinance. So unless the lender is willing to do a judicial foreclosure I wouldn't worry about it.

Maybe I should request a copy of the original terms of the Note and then the modification? Do they give out copies of these documents? Thanks Pattona..

[pattona]

You don't have a copy of the note??? This should be with your closing/escrow papers.

Yes, they will give you a copy of the original note, you may have to pay some kind of processing fee for photocopying et cetera. Some of thse notes are 30-50 pages!

Please have an attorney review vs an agent. An agent is not qualified to give you legal advice (unless of course s/he has license to practice law in your state!).

[CWandSLSat619]

Is the note the 1 -2 inches thick documents that we signed during close of escrow??? hehehe.. then I do have that...