Loan Modification Question

[BBYGRL]

A friend of mine is in the process of getting a loan modification. Although her bank will not reduce the principal, they have offered her a very low interest rate for I believe the next five years. She's reviewing the paperwork right now and wonders if the bank has included the property tax payments in her new loan payment amount. I suggested that she ask the bank directly and to ask her attorney to review her documents and point it out to her before she signs. My question is, do the banks automatically add the property tax payments? Thanks in advance for your help.

[ShanetheMortgageMan]

It depends on the modification terms, there isn't always one way it's set up.  Your friend definitely needs to review the paperwork, if there are questions she should call her bank  Just have your friend play dumb and have the bank rep. point out where in the paperwork does it or doesn't it say that the taxes/insurance are included.

[Anonymous]

somewhere in the new paperwork, there should be a breakdown of the new expected monthly payment.  It should show escrow costs, as well as explain if any escrow adjustments need to be made.  Most likely, if she was paying  taxes as part of escrow before, she will be now.  If not, then probably not.

[BBYGRL]

Thank you! I will do just that.

[geronimo2008]

I am in the same situation.   I was offered a mod of my exiusting loan (not a refinance) by NFCU.  I would up taking it.  I was assured that all that would report would be the lower payment for the remaining term.  i accepted and have been told that they will report to the CRas on the 25th.  i promised in another thrad to report back then and will do so.