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A mortgage mod. is a re instatement of a mortgage the same thing as a mortgage mod?

Stony Point, NY |

I have paid someone to do a modification for my mortgage, he is not a lawyer nor a mortgage broker. He has told me that he made a "deal" with the bank. That I had to pay the bank $2,500 by 3/31 (which I did) and then another 10g in 45 days. The mortgage would be re instated with 55 thousand taken off the mortgage and the arrears put on the back end of the mortgage. Is that a mod??
PS my monthly mortgage payment will stay the same, which I was hoping to change!!!!

Attorney Answers 3

  1. That is not a modification but a reinstatement. Do not accept that deal as it could jeopardize your chances to obtain a permanent modification which will lower your payment. It is illegal for a non lawyer to charge you anything upfront for a modification and what he has one is not a modification. You should retain a firm that handles foreclosure defense and has experience doing modifications it is a complex practice.

  2. What you describe is a modification since it changes the terms of the loan. A reinstatement is when you pay off the arrears and pick up the loan where you left off with the same terms as the original loan.

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  3. Please retain a lawyer that handles modifications and foreclosure defense. I would not advise giving this individual any more money until the file is reviewed by an attorney.

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