What information is included in the trial payment plan?

The trial payment plan paperwork is typically concise, often limited to three pages or less. It does not contain all the details that will be included in the permanent loan modification. Specifically, it won’t outline the final terms the lender plans to offer. Instead, the document will clearly state that the trial payment plan is not the final agreement and that the lender reserves the right to modify the terms for the permanent loan.

The plan primarily focuses on the trial process itself. It will specify that you are required to make three consecutive monthly payments, including the payment amounts and their due dates. These trial payments are often applied to the loan’s principal and interest.

Some lenders may also indicate the type of loan modification you’re being considered for, such as HAMP Tier 1, HAMP Tier 2, or an FHA Partial Claim. Finally, the plan should state that, upon successful and timely completion of the trial payments, you will be offered a permanent loan modification.

What information is not included in the trial payment plan?

Because the trial payment plan is designed to assess your ability to pay, it omits various details that will appear in the final loan modification. Key information not included in the trial payment plan includes:

• The specific terms of the permanent loan modification.
• Details about escrow payments, pre-payment penalties, insurance, or taxes that may be due.
• The interest rate for the permanent modification.
• Information about potential balloon or lump-sum payments required over the life of the loan.

The trial payment plan is a preliminary step in the loan modification process, aimed at determining your ability to make consistent payments before final terms are offered.

If you would like to learn more about trial payment plans or saving your home, an experienced attorney can help you navigate the process. At The Law Center, we are a team of specialists that are passionate about the foreclosure process from start to finish and helping homeowners at the highest level. Our staff and attorneys approach each client and each property as a new challenge, one that requires thorough analysis, zealous representation, and thoughtful strategy. It’s your home, let The Law Center help you defend it.

Call us now and speak with a foreclosure expert on how you can make the foreclosure process work for you -- not against you. (312) 600-8815

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