Mortgage Modifications: Get it in Writing!

03 May Mortgage Modifications: Get it in Writing!

More and more consumers are working with their mortgage companies (or mortgage service companies) to arrange modifications or their loans.

If you are going to seek a modification of your mortgage, do yourself two favors. First, keep a written log of who you were talking and their phone number. Second, make sure any agreements are put in writing and sent or faxed to you by the mortgage or servicing company.

It’s the second of these two that is the most important. You may be speaking with a qualified representative of one department but they might not be communicating with the foreclosure apartment or the bankruptcy department or the legal department. It is therefore quite possible, even likely, that although the modification department has agreed to do something about your loan, the foreclosure department isn’t even aware of it until after your property has been sold! A written agreement can be faxed or sent by you to the right department to make sure such a thing doesn’t happen.

Additionally, with a writing you will know exactly what was agreed to, how much you need to pay and when the payments are due. It will also force the mortgage or servicing company to commit to their terms.

Too often, there are promises made dependent upon you just sending another payment or two. Once those payments are received sometimes those unwritten promises are forgotten, or the manager won’t approve them. Better to get it writing!

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Douglas Jacobs is a California bankruptcy attorney and partner in the Chico law firm of Jacobs, Anderson, Potter & Chaplin. Since 1988, Mr. Jacobs has taught Constitutional law and Debtor-Creditor/Bankruptcy law at the Cal Northern School of Law. He has served as Dean of Students since 1994. He is a frequent lecturer on the subject of consumer bankruptcy law, and has spoken at both state and national levels.
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