Loan impacts
How will this impact your current loan?
Mortgage modification
Short sale
Deed-in-lieu
Reinstatement
Repayment plan
Forbearance plan
Monthly payment
May permanently change based on your unique situation
Interest rate
May increase, stay the same or decrease
Loan term (length)
May stay the same or increase
Life of loan cost
May increase or decrease depending on the unpaid principal balance, interest rate or maturity date of the modified loan.
Monthly payment
Payments end upon the sale of your property
Interest rate
The loan will be terminated and payments end upon sale of your property.
Loan term (length)
N/A
Life of loan cost
Depending on the investor/insurer’s rules, part of the shortfall may need to be paid. Consult your tax professional to discuss any impact to tax liability.
Monthly payment
Payments end when the Deed-in-lieu is completed.
Interest rate
The loan will be terminated and interest payments end upon completion of the deed-in-lieu.
Loan term (length)
N/A
Life of loan cost
Depending on the investor/insurer’s rules, part of the shortfall may need to be paid. Consult your tax professional to discuss any impact to tax liability.
Monthly payment
No change
Interest rate
No change
Loan term (length)
No change
Life of loan cost
The reinstatement payment may include already incurred late fees.
Monthly payment
Will temporarily increase
Interest rate
No change
Loan term (length)
No change
Life of loan cost
The repayment plan will include already-incurred late fees
Monthly payment
Reduced or stopped temporarily
Interest rate
No change
Loan term (length)
The forbearance does not increase the length of the loan term although subsequent long-term options may.
Life of loan cost
No change