Are the people who open up the envelope and cash your mortgage check each month out to get you?
Could be, at least according to syndicated finance guru Suze Orman.
Her point is that if you are asking for a loan modification, and they agree to arrange for a trial modification period, they could be setting you up for a trap.
If you go into modification status on a trial basis, and then a few months down the road they decide that you don’t qualify for the full deal, all the money you have been saving in the meantime becomes due, and if you can’t pay it, the mortgage holder can start foreclosure proceedings at that point.
Of course, you won’t owe the extra money if you decide to file a Chapter 7 bankruptcy case, but if your objective is to stay in your home and not abandon it, you need to be really careful when dealing with mortgage servicers offering “trial” loan modifications.
If you’re near Lawrence or Methuen and have questions about mortgages or bankruptcies, feel free to give me a call at (978) 975 – 2608.
By Doug Beaton