What is Loan Modification?


According to the Consumer Finance Protection Bureaua mortgage loan modification is a change in your loan terms. The modification is a type of loss mitigation.  The modification can reduce your monthly payment to an amount you can afford.  Modifications may involve extending the number of years you have to repay the loan, reducing your interest rate, and/or forbearing or reducing your principal balance.  If you are offered a loan modification, be sure you know how it will change your monthly payments and the total amount that you will owe in the short-term and the long-term.


https://www.consumerfinance.gov/ask-cfpb/what-is-a-mortgage-loan-modification-en-269/


OneNotary.US Platform Notaries will be assisting with the execution of these documents from our Business Partners.  Attached below, you will find an example modification packet.  This tool will provide you with a level of expectation and a sense of how to complete the packet.  Although, the packet may seem overwhelming, we can assure you it is relatively simple to complete properly.


The areas on the packet you will address with the signer(s) have been highlighted for the example only.  This was done to aid you in becoming familiar with the documents.


Do not let these packets intimidate you.. they are very simple… 


Important Note: a Notary Public is not an attorney and cannot provide legal advice or opinions.


  • Point out the information highlighted on the documents to each signer and ask them to, “sign whenever you are ready”.


If they have questions that cannot be answered by the documents or the documents contain errors… encourage the signer to reach out to their loan officer during the session for direction on how to proceed.


  •  Never terminate a session unless it is absolutely unavoidable. 
  • You will see blank notarial certificates that are NOT highlighted… those are designated for the mortgage company and MERS representatives… not for the borrower or borrower's notary.
    • These certificates may already be completed / signed or they may be blank.  Regardless, only use the certificates designated to you and your signer(s).
    • The signer(s) certificate are usually directly below their signature space. 

 

Finally, please don’t forget to add full notarial statements so we are compliant nationwide.


Double check that all notarizations are complete with your venue, stamp, signature, date and full notarial statements…

  • “Sworn to before me this ____ day of ________, 2021 by, ( MR. SIGNER & MRS. SIGNER ) who produced ( PASSPORT  & DRIVER'S LICENSE ) as identification along with multi-factor authentication and audio/video recording to be notarized online”
  • “Acknowledged before me ( NOTARY PUBLIC’S NAME ), Remote Online Notary, this ____ day of ________, 2021 by, ( MR. SIGNER & MRS. SIGNER ) who produced ( PASSPORT  & DRIVER'S LICENSE ) as identification along with multi-factor authentication and audio/video recording to be notarized online”
    • Some notarial statements may require minimal additions while, others may require you to add everything. 


***Modification packets may or may NOT be highlighted or flagged.  It is best that you learn these documents rather, than depend on the system to guide you.****