LA_R – I don’t think that freezing the interest rate or in some other way modifying an existing purchase money loan would automatically change the characterization of the loan from non-recourse to recourse.
The ones I have seen are really a no-cost refi, not a change in loan terms. It is put forth (advertised) as a loan modification, but paperwork looks like a no-cost refi… some even advise that you take a little money out (cash out) for emergency cushion. This cash out also allows them to charge an extra 0.25% to 0.5% on the rate. Admittedly, I have not seen all the ‘mods’ being done..
Certainly anyone who agrees to a modification would want to pay close attention to any mod agreement they may be required to sign to determine if there is any language regarding recourse.
