If I put in for a loan modification but got a forbearance agreement, is this normal?
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If I put in for a loan modification but got a forbearance agreement, is this normal?
Asked on April 11, 2012 under Real Estate Law, Delaware
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
What's normal is to not receive a requested loan modification. For all that the Administration may be encouraging banks to modify loans, they are NOT legally required to do so--banks are free to ignore or deny modification requests and generally do so; only a small minority of homeowners seeking modification receive them. Thus, your bank has responded in a way which acknowledges that you may be having difficulty making payments right now, but which otherwise ignores your request for modication, which is its right. You can and should keep trying--but the bank never has to agree to modify your loan.
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