A loan modification is simply just a modification of the original mortgage contract. The terms of your modification will identify any changes to that that will affect your current mortgage.
Many borrowers are unaware, but when they sign their mortgage contract, there are specific terms and conditions that they might not be privy to. One such condition in most all loan contracts is that if a mortgage servicer believes in good faith that the borrower might default in the near future, then the servicer can call that loan due. While this is a rare with most mortgages that are made in America, this is becoming more and more common when it comes to loan modifications.
Many homeowners in our forum are complaining that mortgage servicers are rescinding their mortgage modifications and not honoring their agreements. When in reality, they are actually going by the original mortgage contract and exercising their right to rescind the loan.
- It may not seem fair, but it is in these contracts somewhere hidden in the fine print that most people never read.
When it comes to debt collections, what you say, can and will hurt you. So, please be aware that when you are going to save your home or negotiate with creditors, they’re just trying to collect a debt. They are not here to be your friends.
Think of this like a game of poker, but only with your mortgage and home. You have to know when hold em, and when to fold em.