“Temporary modification” has become a very common and dangerous obstacle to true long-term mortgage solutions. While the government has encouraged banks to offer temporary mortgage modification through the payment of monetary rewards to the bank, the practice has, in fact, led to a false sense of a “solution” and increased home loss. Trial or  temporary modification is the process by which a bank or lender grants an “interim” or temporary solution or forbearance, whereby they take lesser payments on a temporary basis. It is not a permanent solution and can serve to create a false sense of security and a larger balance on missed or reduced back payments. By offering a temporary “peace” the bank reaps significant financial rewards from the U.S. Government, and the homeowner gets temporary relief while often falling further behind. 

Ultimately, the bank ends the trail modification, sends a bill for all the reduced payments and catapults the borrower into foreclosure and home loss.

Homeowners in trouble need to be careful of temporary modifications. If a modification isn’t permanent, it’s rescindable at will by the bank, which then follows up with a full demand for all lowered payments due immediately. Don’t get trapped. It’s a problem, not a solution.

  • Thousands of Connecticut families lose their homes as a result of temporary modification every year.
  • Any modification that doesn’t have a clear finish date at the end of the loan is temporary.
  • Modifications that are not in writing are temporary and rescindable at the will of the bank. Be careful.
  • Modifications that are not reflected in continuing accurate monthly mortgage statements are usually temporary.
  • Modifications that are not documented by court order are usually temporary and are extremely dangerous to the homeowner.
  • Modifications that require further paperwork, further review, further submission, or additional court orders are usually temporary, and always worrisome.
  • Trail modifications give a false sense of security that leads to increased home loss.