It's not unusual for a company to require the borrower to bring the loan up to date in payments or at least pay a large percent of the arrears before qualifying them for the modification. It could be that the modification is to keep the loan out of default and possible foreclosure. I've had two this month that were exactly like this. The terms were changed from adjustable to fixed rate and the borrowers had to bring the account up to date or agree to have the default balance added to the back of the loan before the modification was done. |