Know the Difference Between Trial and Permanent Loan Modification
Most of my clients don’t understand the difference between a trial loan modification and a permanent loan modification. I’m writing this article to help homeowners better understand and navigate their way to successfully modify their home loan(s). Most homeowners understand only what they see in the paper or published reports. This is one reason why people are saying ” I’m reading that everyone is getting help, but I’m getting nothing”. The headlines read: 650,000 have received help under the new government modification program. What the article leaves out is the fact that these are all TRIAL loan modifications & all the information must be submitted again for review in 3-5 months.
During the 3-5 month trial period you will:
- Not receive payment coupons for scheduled payments
- Still considered delinquent on your loan
- Will have to submit financial via fax again!
Homeowners have a hard enough time submitting their paperwork to lenders the first time without it getting lost in the shuffle. On the second time around, if the bank loses your paper work, they will consider the loan back in default and not extend the loan modification (trial or permanent) again. Do you see where I’m going with this? Under 5% of the trial modifications turn into a long term solution.
Our loan modification attorneys use the best technology available to help our clients through the maze of loan modification. I have contacted numerous loan servicers to discuss an automated underwriting system. I even met with industry executives at a loan modification conference in Dallas, TX to discuss the issues in person. After the conference, I concluded that most of the loan servicers and banks are truly more interested in the bottom line & most homeowners are looked at as a risk or return and nothing more. The only way to move forward efficiently is to implement the technology that has driven our country to the forefront of the world. I use organization and automation everyday to keep my firm organized. If the loan servicers would do the same, we could fix this mess sooner rather than later.
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Greg January 11th
This was a clear and concise explanation of a topic that is pretty hot right now. Thanks for a great article which shines a light on an interesting subject. I’ll be staying tuned for more articles just like this one in the future. Check out our site also Loan Modification.
Colin McGarvey January 17th
Great Article! The bank lost my paperwork too. It was a terrible two weeks until i hired an attorney to deal with all the paperwork and they helped turn my trial loan into a permanent loan. Listen to these guys, they know what they are talking about
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