Always Be Prepared
In this stressful situation with so much information being exchanged, it is easy to forget things or miss the details. Don't rely on your memory, it can fail you. Make sure you have everything written out in front of you. Never make a call without first reviewing your notes, and having a strategy already in place.
Review the Agreement Carefully
Once you get a written Loan Modification or Forbearance Agreement look over it carefully and make sure everything you have negotiated has been included in the document. Don't assume anything spoken will be honored, make sure all of the agreed upon terms are in the written agreement.
- REVIEW IT CAREFULLY -
Pay close attention to these terms in your written agreement:
1. Interest rate and payment calculation
2. Provisions for the mortgage holder's recovery of delinquent interest and accrued fees. Review both the method of recovery/repayment and the calculation of the total amount to be recovered.
3. Penalties that take effect if the loan is not kept current. In some cases the lender will attempt to keep the foreclosure door open, thereby allowing for an accelerated foreclosure if the loan becomes delinquent again.
If you find a discrepancy kindly bring it up to your lender, as most omissions or mistakes are simply that, and nothing more sinister, and can very easily be corrected.
Get Legal Advice
Before signing anything run the documents by a qualified attorney, and have them look for any thing you may have overlooked. Keep in mind that your agreement is more than just a modification of your terms, but it is an attempt to collect a debt. The agreements may ask you to waive certain legal rights that you are entitled to and perhaps contain provisions that you may not understand. If you do work with an attorney make sure you provide him with all the notes you have taken to help give him some insight into the development of the agreement over the course of your negotiations.
A free do-it-yourself modification kit is available at MBA Commercial .
A free 24 hour recorded message explaining loan modifications is available at 800-958-1952 .
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