Alternative Modification Loan Modification Summary by yda82100


									                                                                          Alternative ModificationTM

                       Alternative ModificationTM—Loan Modification Summary

To help you better understand the enclosed Loan Modification Agreement, the following summary outlines
the key sections and what’s included in each. Note: this summary is not intended to replace the actual Loan
Modification Agreement, it is only a supplement to assist you during your review. Some sections described
below may vary from your actual Loan Modification Agreement. Make sure you carefully read the Loan
Modification Agreement and contact us with any specific questions.

                                         Loan Modification Agreement
             Section                                                 Contents
                                  Shows the following:
                                  ●  Date of the Loan Modification Agreement – this is the date the Loan
                                     Modification Agreement is effective
                                  ●  Borrowers’ names
 First Two Paragraphs of the      ●  Mortgage company name
 Loan Modification                ●  Reference to your original mortgage
 Agreement                        ●  Address and legal description of the property
                                  This part explains that the new Loan Modification Agreement will amend/
                                  supplement any other previous mortgage documents that you have signed
                                  and that were executed (put in place) when you first obtained your
                                  mortgage and prior to any modification.
                                  Shows the unpaid principal balance (this is the amount that you still owe on
 Section 1                        your mortgage as of the date of the Agreement, and may include unpaid
                                  interest and other expenses).
                                  Shows the following:
                                  ●  What your new monthly payment will be
                                  ●  What day of the month your payment is due
                                  ●  The interest rate on your mortgage (and any possible changes to the
                                     interest and payment due during the term of the modified mortgage)
                                  ●  The terms of any deferred principal amounts not included in the
                                     calculation of your payments, that you would still owe, at the maturity
 Section 2                           date or when you sell the property.
                                  ●  The maturity date – this is the date when the modified mortgage ends
                                     (your final payment is due). If there is a remaining balance after the final
                                     payment is made, you will need to pay this remaining amount in full on
                                     the maturity date.
                                  This section outlines your new payment information/terms for your
                                  modified mortgage and is your promise to pay according to the new terms.
                                  Explains that before you sell or transfer the property (or any interest in the
                                  property), you need to get prior written consent from your mortgage
 Section 3
                                  company. If not, the mortgage company can demand payment in full on the
                                  mortgage, as modified.
                                  States that you agree to comply with all agreements and requirements of
                                  your pre-modification mortgage with the exception of (if applicable) any
 Section 4                        provisions/terms related to interest rate adjustments and the Timely
                                  Payment Rewards – both of which are canceled as of the date of the Alt Mod
                                  Loan Modification Agreement.

Alt ModTM—Loan Modification Summary                                                                       1
                                                                        Alternative ModificationTM

                     Alternative ModificationTM—Loan Modification Summary

                                  States that you understand and agree that:
                                  ●   The mortgage company reserves the same rights and remedies to
                                      collecting the debt on the modified mortgage as it did on the original
Section 5
                                  ●   This Alt Mod Loan Modification Agreement does not release you from
                                      the original note and security agreement, except as modified by the Alt
                                      Mod Loan Modification Agreement; and
                                  ●   You will complete all documents required to complete this modification.

Alt ModTM—Loan Modification Summary                                                                    2

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