What is a Trial Modification?
Last Sunday morning, I sat down with some homeowners to discuss their options relating to the foreclosure mess they were in. Through the course of the conversation, I learned that they had just received a letter stating that they didn’t qualify for a loan modification, after having been in a period of “Trial Modification.” Some of you might have heard of people in Trial Mods. Maybe you are in one yourself. If so, there are some things you ABSOLUTELY need to know about how these things work. What exactly is a Trial Modification? Simply put, it is a period of time when the bank gives you a new lower payment, without committing to allow you to keep that payment permanently. Presumably, this is to see if you can indeed make the new payment. One would assume that if a homeowner were successful at making the payment for a period of time, that the bank would then agree to make the terms of that modification permanent. But you know what they about saying “assume.” Don’t do it. Especially not i
