By Marcie Geffner - Bankrate.com
As if a borrower didn't face enough hurdles in the quest for a mortgage modification, now there is another. It's the required "trial period" of the federal government's Home Affordable Modification program, and it may be a feature of other mortgage modifications as well. The typical trial period lasts three months and allows the loan servicer to test the borrower's ability to make the modified loan payment before finalizing the modification.
Loan servicers have sent out more than 300,000 letters to homeowners who might qualify for a lower mortgage payment through the government's program, according to the U.S. Treasury Department. If you received such a letter or expect to participate in a mortgage modification program, you may be curious about the trial period requirement. Here are 10 questions and answers:
1. Is a trial period required to get a mortgage modification?