Loan Modification – Frequently Asked Questions

Do you own a home in Brentwood, Discovery Bay or Antioch? Need some answers about modifying your mortgage?  Here are a few answers from the FAQ’s about Loan Modification for Mortgages from the HUD website.

“A Loan Modification is a permanent change in one or more of the terms of a mortgagor’s loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.”

Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?

Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.

Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition?

Answer: Yes, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor’s continued ability to support the modified mortgage payment.

To read the rest of the article, go to http://www.hud.gov/offices/hsg/sfh/nsc/faqlm.cfm