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Be Prepared: Trial Period for Modified Mortgages Exists

There is an interesting new twist to the whole loan modification procedure.  Mortgage modifications may require a three-month trial period in order to test the borrower’s ability to make payments under the modified loan structure.  If the borrower meets the requirements during this trial period then the loan modification will be finalized. During the trial period a loan could be reported as delinquent and in most cases the foreclosure process will be suspended.

For the most part, this trial period is specific only to the federal government’s Home Affordable Modification program.  However, expect modification programs that fall outside of the federal government’s program to implement the trial period as well.

In a recent article by Marcie Geffner of Bankrate.com, she describes 10 things that a borrower needs to know about the trial period. To read more about those ten items, please click on this link, Modifying Mortgage Trial Period

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