A mortgage loan modification is a change in one or more of the terms of a homeowner’s loan, which results in a payment that the homeowner can afford.

Question: In using loan modification to bring a mortgage current, can the lender include all fees legal and otherwise?

Answer: Yes, Legal fees and related foreclosure costs can be added into the modified principal mortgage loan modification balance.

Question: Can the lender ask for an inspection of the interior of my home is I use one of the loan modification program or obama’s loan modification program?

Answer: Yes, the bank or other lender may verify that the property has no physical conditions that adversely impact the homeowner’s ability to support the loan modification mortgage payment.

Question: Can my lender include late charges in the final loan modification balance?

Answer: No. The lender should waive late charges at the time of the mortgage loan modification.

Question: Is there a new interest rate basis which lenders may assess when completing loan modification programs?

Answer: Yes, lenders should reduce the loan modification note rate to the current market rate.

Question: Should my bank or lender re-amortize my mortgage modification over a 30 year period?

Answer: Yes, lenders must re-amortize the total unpaid amount due over a 30 year period from the due date of the first installment required under the loan modification program.

Question: What date is used when determining the correct interest rate for a loan modification?

Answer: The date the lender approves the mortgage loan modification.

Question: Can I qualify for one of the loan modification programs, like obama’s loan modification program, if my spouse or I are unemployed?

Answer: The lender will conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new mortgage loan modification payment.