What Happens to My Late Payments After I Get Modified?
WHAT HAPPENS TO THE LATE PAYMENTS THAT I OWE?Mortgage Modification Answer:
The late payments that you owe will either be:
1) Forgiven by your lender
- Yes, depending on your situation and your lender, the amount you owe could possibly be forgiven. Lenders have been apt to forgive the outstanding amounts especially for second mortgages.
- This means the amount owed will be added to your principal balance and will become part of your new amortized monthly payments.
3) Repaid as Lump Sum or as a Payment Plan
- Sometimes lenders will ask that you pay the outstanding amount with whatever reserves you have in the bank. The amount is often reduced so you wouldn't have to pay the entire amount.
Instead of a lump sum payment, lenders may devise a payment plan for you to repay what you owe, outside of your new monthly payments according to you loan modification agreement.
All the best to you!