On Three Month Loan Modification Trial Period Payment and Stopped on Fourth Month

by SUE BROWN
(VERO BEACH FLA)

I DID THE THREE MONTH TRIAL PERIOD PAYMENT ON THE FOURTH MONTH I DID NOT PAY WHAT WILL HAPPEN NOW?


Mortgage Loan Modification Answer:

My question to you is, why did you stop the payments? Have you called your lender to get the paperwork for the permanent loan modification now that you've finished the 3-month trial period?

The usual sequence of events is that the lender will contact you after your trial period, but if they don't, then you must contact them to make sure they are moving forward to give you a permanent loan modification.

Now if you stop paying on your own after 3 months of your trial period without any communication with your lender, you are in jeopardy of being denied a permanent modification if the lender determines that you are now late and are in default of your trial modification terms. In their eyes, you have shown bad faith by violating the payment terms you agreed to for your trial mod.

Is there any reason why you stopped payments? Did someone tell you to do so? Are you in further hardship?

Please go back to your trial loan modification paperwork and read the instructions carefully as to what your lender expects you to do during and after your trial period. They usually have language in there that says what will happen if you violate the terms of your trial modification.

In any case, I urge you to contact your lender right away to see if they are planning to extend your trial period or are in the process of making your mortgage loan modification permanent at this point. I hope very much that the latter is the case for you. Otherwise, you will have to come up with a very good excuse as to why you stopped making payments.

All the best to you. If you need further assistance, please come back and post on this website again.