Yet, $2,220 is the normal.Here is an example of a Subject To I did, in foreclosure, bringing their loan current, taking over their loan and giving them “cash out”, they had a previous loan mod as a 2nd loan.

We have a 4plex in a commercial close to the Moda Center and Convention center.

There are no rules that a borrower gets a loan mod for the asking...or that all borrowers are eligible for a loan mod but, if a lender offers a loan mod as an option, and IF a borrower IS eligible, there are rules that prohibit the lender from not offering one.For a loan modification to be considered, there needs to be documentable income sufficient to service the debt at a subsidized rate/term.

Now it's time to jump on a call to rate mod a loan from 4.95% to 3.6% using a swap. 

I expect to mod a lot of loans and move missed payments to the back end.4.

Every agent should know that in a loan mod, a portion of the principal is temporarily "put on the side", usually about a third, for the sole purpose of calculating a new lower payment (ie 2% interest, 40 year amortization) on the remaining lower balance.  

Essentially as I understand it, the IRS may view the mod as a 'new loan' there is a taxable gain from the cost basis of the NPL to the UPB. 

Would this tax issue be caused because the CPA views the mod as a new loan?

If one’s neighbor told you they just got their balance reduced from 300,000 to the current market value of 175,000, every neighbor on the block will want a loan mod as well, and it will set into default loans that might have otherwise remained current.

Another example of this type of setting is failed forbearance to modifications or the "Trial Mod" as they are often called.