Are loan modifications forcing homeowners underwater?

“Servicers routinely capitalize delinquent interest, corporate advances, escrow advances and attorney fees and other foreclosure-related fees and expenses into the loan balance when completing a loan modification,” the report says. In other words, the modification process usually allows lenders to tack onto the principal previously missed mortgage payments, as well as other fees incurred during the modification.

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Are loan modifications forcing homeowners underwater?

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