How can a person be expected to pay such a large lump sum after a loan modification is done?

Asked by Dollyde, 95219 Wed Nov 30, 2011

We were approved for a home loan modification, but after reading that we have to pay over $46 thousand at the end we wonder if it's worth it, and where are we going to come up with that kind of money?

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CJ Brasiel, Agent, San Jose, CA
Thu Dec 1, 2011
Doll -

Review the loan modification paperwork with a real estate attorney and local loan officer before signing. Understanding the details, whether or not this is a recourse/non-recourse situation, as well- predictions on recouping the $46K in future appreciation.

Good luck!
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0 votes
Randy Elliott, Agent, Lodi, CA
Wed Nov 30, 2011
Hello Dollyde,

Does your paperwork actually state that you would have to pay a lump sum of the $46k, or perhaps that amount is being added on to the balance or "back end" of your loan?

Elva was correct in that you should be talking directly to your lender to have them explain in full detail what the new terms are of your modification.

Be persistent until you have all of your questions answered so that you fully understand the terms of your situation.

Good luck!

0 votes
J, Agent, Greensboro, NC
Wed Nov 30, 2011
Hi Dollyde,

I would assume you have spoken with the bank related to other options available to you for your individual situation. Typically a bank will discuss options before approving a home loan modification. Given the limited information on your thread the $46K is questionable at this point. Thanks!
0 votes
Rocky G.H. H…, Agent, Ripon, CA
Wed Nov 30, 2011
Most loan modifications are like delaying the inevitable. Unless you get a principle reduction or a permanent interest rate reduction, its all smoke and mirrors. The other option is to refinance into a better loan. This is tough however if your up side down.

There are many other options in addition to a Short Sale you may want to take into consideration. You may want to connect with a professional to understand other options that may be available.

I hope this helps,


Rocky G.H. Hawrysz,
Prudential California Realty
(209) 444-6610 – Direct
License No. 01468373
0 votes
Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Wed Nov 30, 2011
Hi Dollyde,

Did you work with your lender directly? If so, you should discuss the terms of the modification with your lender to see if there are any other options. Also, keep in mind, the lender is not legally obligated to modify your loan.

Best regards,

Elva Wormley
C2 Financial Corporation
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Nov 30, 2011
In theory you pay that when you sell the home.
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Nov 30, 2011
Something doesn't ring true for you:
I suggest you contact HUD, http://(
and hit "CONTACT US"

I'm wondering it you ran into a Scam:
Have you paid anything into it yet? Application Fee or such?

Good luck and may God bless
0 votes
Dollyde, Home Owner, 95219
Wed Nov 30, 2011
My zip is 43412 not what it said on here!
0 votes
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