Mortgage loan modifications gained a lot of popularity during the last Presidential administration, because there was a record number of foreclosures in the country and America was facing a major housing crisis. Part of the problem was that homeowners from coast to coast owed more than what their home was worth, because lenders had made mortgage loans with very little documentation and paid little attention to the value of the home vs the amount being loaned. So when a homeowner needed to get out of the note, they were not able to do so because they could not sell the house for what was owed. In order to keep people in their homes, the government came up with a few programs whereby mortgage lenders had the ability to rewrite their own mortgage loan note. This process is called mortgage modification, and it has saved thousands of homeowners from being forced out of their home.
There are other benefits to mortgage loan modifications and one of them could be the ability to prevent a bankruptcy filing. Bankruptcy might be avoided if you modify your mortgage; because once your mortgage payments are lower you have more money to pay your other bills. But getting a modification can be tricky, and you should partner with an experienced bankruptcy and debt management attorney when making your request. If you are turned down for a modification, or the modification does not give you the relief you need, bankruptcy is still available to you. Here are some ways these two debt management methods can help you:
• Bankruptcy can eliminate or reduce your debts, freeing up your disposable income so that you can pay the bills that matter the most.
• Mortgage loan modifications can reduce your interest rate, thereby reducing the amount of your mortgage payment. When your mortgage payment is less, you save money and can start an emergency fund or pay your utility bill without struggling.
We know how to help with both of these types of financial relief. Bankruptcy requires computation of a complex mathematical formula to determine which type of case you qualify to file, and a mortgage loan modification requires filling out an application and providing documentation regarding your income. We know how to apply the bankruptcy laws to your situation, and also know how to hold a lender’s feet to the fire when you are asking for your mortgage loan to be modified.
For help with your questions about bankruptcy or mortgage loan modifications, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that help get you back on your feet.