Mortgage Modification Agreements
I have entered into a loan modification agreement with my mortgage company, which includes an extra amount which is deposited into an escrow account. Is it feasible to alter the terms and request to NOT have added funds go into the escrow account, as a result only sending in funds for the principal and interest only?
Answer by Alvinnie
The key to your answer is in your question. You agreed with the mortgage organization regarding a loan modification. Apparently, portion of that agreement was an additional deposit to your escrow account. You can surely ask, but it appears to be part of your agreement with the mortgage firm at this point. The mortgage business would have no obligation to agree.
Answer by dog ma
Most lenders enable this if you have at least 20% equity and have by no means had a late payment.
Taking into consideration that you are strapped enough to call for a modification, then no. You have not demonstrated the economic capability to pay the normal mortgage payment – they will absolutely not take a chance that you will not pay your taxes or insurance on their collateral.
No one here knows the terms of the agreement that YOU signed. Some lenders require an escrow account. Consult the lender.
No. You need that escrow money to cover property taxes and insurance.