FAQ

Frequently Asked Questions

What is a Loan Modification?

A modification occurs when a Lender agrees to “restructure” an existing loan without refinancing. This can mean,

extending the term, reducing the interest rate, negotiating late fees and penalties, and reducing the principal amount

owed, or all of the above.

What is a Forbearance agreement?

This is an instrument the Lender will use to collect past due payments. Typically, if your payment were $1000.00 per

month and you owed 3 months, they would take the $3000.00 you owe and spread it out over time. So, if you paid an

extra $200.00 every month, in 15 months you would be current. This is a common collection practice. In forbearance

the "pause button" is hit in the foreclosure process. Yet the lender has the right to pick up where they left off if you do

not pay on time. 

What is a Short sale?

A short sale is a term used to sell a property “short” of what is owed on the mortgage. If you had a property that had

a “market value” of: $150,000 and you had a Mortgage on the property of: $180,000 your Lender could agree to sell

it “short” of the $180,000. This can be a complex and timely process in order to find a buyer and get the Lender to

agree to sell the property short.

The MPAT negotiators are skilled in all theses areas and we have had much success with Loan Modifications and Short Sales.