MORTGAGE RIGHTS
Loan Modification Mistakes Time Is Not on Your Side Delay Harms the Homeowner Loan modification abuses frequently cause delay, which can cause a modified payment to be more than the homeowner can afford. In fact, it is not uncommon for a homeowner to receive a modified payment that is higher than the original payment. The chart below shows what happens if a borrower pays their December payment, but does not make any payments through July.

 

The important column is Interest Arrearage. Interest Arrearage is the amount of interest that the homeowner owes. When a mortgage company modifies a loan, it often will add the amount of the Interest Arrearage to the Principal Balance. (That is called capitalization). The amount due on the mortgage becomes Principal Balance + Interest Arrearage. Since the amount due has increased, the monthly payment increases. If it only takes one month to approve the modification of the loan in the chart, only $617.12 will be added to the Principal Balance. If, however, it takes seven months to approve the modification, $4,319.84 will be added to the Principal Balance. The client for whom I prepared this chart could not afford the monthly payments when $4,319.84 was added to the loan, but could have afforded the monthly payments if only $617.12 had been added to the loan. I argued to the court that the mortgage company's unreasonable delay forced my client into foreclosure. Like Flagstar, this mortgage company prevented my client from saving her home.
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 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Loan Modification Mistakes Time Is Not on Your Side Delay Harms the Homeowner Loan modification abuses frequently cause delay, which can cause a modified payment to be more than the homeowner can afford. In fact, it is not uncommon for a homeowner to receive a modified payment that is higher than the original payment. The chart below shows what happens if a borrower pays their December payment, but does not make any payments through July.
The important column is Interest Arrearage. Interest Arrearage is the amount of interest that the homeowner owes. When a mortgage company modifies a loan, it often will add the amount of the Interest Arrearage to the Principal Balance. (That is called capitalization). The amount due on the mortgage becomes Principal Balance + Interest Arrearage. Since the amount due has increased, the monthly payment increases. If it only takes one month to approve the modification of the loan in the chart, only $617.12 will be added to the Principal Balance. If, however, it takes seven months to approve the modification, $4,319.84 will be added to the Principal Balance. The client for whom I prepared this chart could not afford the monthly payments when $4,319.84 was added to the loan, but could have afforded the monthly payments if only $617.12 had been added to the loan. I argued to the court that the mortgage company's unreasonable delay forced my client into foreclosure. Like Flagstar, this mortgage company prevented my client from saving her home.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Loan Modification Mistakes Time Is Not on Your Side Delay Harms the Homeowner Loan modification abuses frequently cause delay, which can cause a modified payment to be more than the homeowner can afford. In fact, it is not uncommon for a homeowner to receive a modified payment that is higher than the original payment. The chart below shows what happens if a borrower pays their December payment, but does not make any payments through July.
The important column is Interest Arrearage. Interest Arrearage is the amount of interest that the homeowner owes. When a mortgage company modifies a loan, it often will add the amount of the Interest Arrearage to the Principal Balance. (That is called capitalization). The amount due on the mortgage becomes Principal Balance + Interest Arrearage. Since the amount due has increased, the monthly payment increases. If it only takes one month to approve the modification of the loan in the chart, only $617.12 will be added to the Principal Balance. If, however, it takes seven months to approve the modification, $4,319.84 will be added to the Principal Balance. The client for whom I prepared this chart could not afford the monthly payments when $4,319.84 was added to the loan, but could have afforded the monthly payments if only $617.12 had been added to the loan. I argued to the court that the mortgage company's unreasonable delay forced my client into foreclosure. Like Flagstar, this mortgage company prevented my client from saving her home.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Loan Modification Mistakes Time Is Not on Your Side Delay Harms the Homeowner Loan modification abuses frequently cause delay, which can cause a modified payment to be more than the homeowner can afford. In fact, it is not uncommon for a homeowner to receive a modified payment that is higher than the original payment. The chart below shows what happens if a borrower pays their December payment, but does not make any payments through July.
The important column is Interest Arrearage. Interest Arrearage is the amount of interest that the homeowner owes. When a mortgage company modifies a loan, it often will add the amount of the Interest Arrearage to the Principal Balance. (That is called capitalization). The amount due on the mortgage becomes Principal Balance + Interest Arrearage. Since the amount due has increased, the monthly payment increases. If it only takes one month to approve the modification of the loan in the chart, only $617.12 will be added to the Principal Balance. If, however, it takes seven months to approve the modification, $4,319.84 will be added to the Principal Balance. The client for whom I prepared this chart could not afford the monthly payments when $4,319.84 was added to the loan, but could have afforded the monthly payments if only $617.12 had been added to the loan. I argued to the court that the mortgage company's unreasonable delay forced my client into foreclosure. Like Flagstar, this mortgage company prevented my client from saving her home.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.  MORTGAGE RIGHTS