A client came to me. He had already gone bankrupt. He no longer owed the debt. He had a 633k mortgage. The bank agreed to cut the principal to 500k and 2 percent per year for the next 10 years. Not a bad deal if you can get it.
my neighbor is in the process of a modification. She brought the paperwork to me and from Wells Fargo, there is no mention of the principal amount they want to base their figures off from. No interest rate. No mention of reduction in principal, no length of the note, and only a payment without principal.
I told her to not sign and ask them to spell the terms out with specifics. Frankly speaking, she should ride this out as long as possible.