[Scipy-tickets] [SciPy] #1665: Can You Get More Than One Modification On A Mortgage Loan

SciPy Trac scipy-tickets@scipy....
Tue May 29 05:28:46 CDT 2012

#1665: Can You Get More Than One Modification On A Mortgage Loan
 Reporter:  bomwesoly  |       Owner:  somebody   
     Type:  defect     |      Status:  new        
 Priority:  lowest     |   Milestone:  Unscheduled
Component:  Other      |     Version:  0.10.0     
 Keywords:             |  
 A loan modification is nothing more than an agreement between two parties
 to modify the terms of an original contract. In the case of a mortgage
 loan modification, the http://ciudadchacao.org contract in question is a
 mortgage contract. Since the agreement is between two private entities,
 the borrower and the lender, the terms of the contract may be modified as
 many times as both parties are willing to agree to.

  Since the answer to the question can you get more than one modification
 on a mortgage loan is yes, many borrowers have some hope if they are
 trying to save their home from foreclosure a second or third time.

  A persons chance of being approved for a second or third loan
 modification increases as the time between modifications increases. This
 means that a person will have a better chance of being approved for
 another loan modification after a decade from their first loan
 modification than after a year. This does not mean that a person wont be
 awarded a second or third loan modification shortly after their original
 modification, it only means that the borrower will have to have one good
 reason and one good lawyer to get the modification approved.

  One way to avoid the hassle of asking for another modification is not to
 agree to a first loan modification that doesnt do anything to fix ones
 problems. For example, if the borrower requests a loan modification and
 their lender makes an offer to modify certain terms of the original
 contract, but those terms do not make payments as low as the borrower
 needs them to be, then the borrower should refuse to accept the terms and
 should attempt to negotiate via a trained foreclosure attorney. If the
 borrower accepts bad modification terms, only to turn around and ask for
 another modification shortly after their first one goes into effect, the
 lender could use the fact that the loan modification terms have already
 been agreed to as a reason to deny further requests to modify.

  Borrowers who were approved for their first or second loan modification
 several years ago will have a much easier time being approved for an
 additional loan modification since there is no guarantee that a person
 will not fall back into financial trouble once they climb out of it. It is
 reasonable to believe that a person could lose their job more than once or
 be affected by an injury more than once.

  If a borrower wants to avoid having to go through the loan modification
 experience more than once over the life of their loan, they are urged to
 secure the services of a foreclosure attorney who can fight for the best
 terms possible for the borrower the first time around. If the terms of the
 borrowers first loan modification make monthly loan payments low enough,
 the borrower will have to worry less about getting another loan
 modification in the future if more payment trouble arises. If the lender
 has already made an offer to modify certain terms, the borrower should
 have that offer reviewed by an attorney to ensure that the offer serves
 the best interests of the borrower.

Ticket URL: <http://projects.scipy.org/scipy/ticket/1665>
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