Thanks for visiting the website; I’m Derik Lewis with Lawyers Realty Group. We’re here to help you with all aspects of traditional real estate and short sale transactions in the Southern California area. If you are facing foreclosure and are seeking an alternative to it, you can always consider protecting your credit and doing a short sale on your home.
Today I’m going to discuss my opinion about another alternative to foreclosure that I’m a little skeptical about, trial loan modifications. I had an individual ask me if trial payments on a loan modification are a bank tactic. When you apply for a loan modification, they ask you some general questions and then send you some documents to fill out. If you’re anywhere in the range of being eligible for a loan modification, they are forced to send you the documents and talk you through it. The servicers have an incentive to enter you into a trial payment plan. The trial payment is a way to get you to keep sending them money while they take more than enough time evaluating your loan modification.
It’s my belief that the servicers are collecting the payments, taking their fees first and then sending the remaining balance towards the payment. After a significant amount of time, people are still receiving debt validation notices telling them they are behind by so much money, even though their loan modification application hasn’t been denied yet. I feel that the servicer will put just about anyone into a trial modification period in order to get the payments coming in so the servicer can collect their fees.
I’m not saying that there aren’t some valid loan modifications out there; I think you just need to be cautious about making the decision of doing a trial loan modification. We have a lot more information on our website concerning this, so feel free to check it out. There is also an abundance of information if you are looking for other alternatives to foreclosure, such as short selling your home. If you have any further questions regarding trial loan modifications, short selling your home, or current real estate information please contact me today. You can email me or give me a call. We’re happy to assist you at Lawyers Realty Group.