Loan Modification Fundamentals
1 hour 30 minutes
Learn how to differentiate between loan modification and forbearance agreements to ensure the best option for your clients.
Oftentimes, a loan modification or forbearance agreement may be the solution to a borrower’s default, whether caused by a temporary or permanent solution. This topic will distinguish the two and provide insight as to which one is better suited for a particular situation and what provisions should be included, and will also provide servicers, attorneys and investors with an understanding of the litigation issues that may thereafter arise should the borrowers default after executing the forbearance agreement, such as loss of priority, statute of limitations issues and consumer protection laws.
• You will be able to define and distinguish between a loan modification and a forbearance agreement.
• You will be able to discuss when a forbearance agreement should be entered into prior to a loan modification.
• You will be able to explain the procedures required to proceed with foreclosure after a default under a forbearance agreement.
• You will be able to review forbearance agreements to ensure they provide essential clauses.