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FHA Loan Modifications: When Does a Trial Payment Plan Fail?

August 23, 2011

In a recent blog post we discussed FHA loan foreclosure avoidance options, and what happens when a lender agrees to work with the borrower to do a trial loan modification. In some circumstances a borrower is required to complete a trial payment plan successfully before a more long-term loan modification program can begin.

According to the FHA, “A trial payment plan is an important tool for confirming a mortgagor

Joe Wallace - Staff Writer

By Joe Wallace

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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