Are You Facing Foreclosure? Bankruptcy Can Help.
Loan Modification, Bankruptcy, or Both?
Loan Modifications Are Frustrating To Say The Least.
Many homeowners contact their mortgage company to try to obtain a loan modification only to become frustrated by the process.
Mortgage lenders route your to a call center where you talk to a different person every time you call.
You are asked to send documents over and over. Sometimes they lose them or say they never received them. Other times, you send the documents but by the time you actually talk to someone, you are told the documents are outdated and you have to send them again – starting the wait all over.
Loan Modification Companies Don’t Help.
Most companies that say they can help you get a loan modification aren’t worth the fees they charge. A loan modification company has no more leverage than you do in obtaining a loan modification. The biggest problem is they have no way to handle the missed payments if has been more than a few months since your last payment. And, the foreclosure process continues while your company is talking to the loss mitigation department about your loan modification.
How Does Bankruptcy Help?
First, bankruptcy stops the process immediately upon filing. Nothing else does this. Next, bankruptcy permits you to stretch out re-payment of your missed payments and begin paying your mortgage again. While bankruptcy can’t force the lender to modify the interest rate or loan amount, it does help in negotiating a loan modification. Chapter 13 bankruptcy is one of the best ways to save your home from foreclosure.
Todd Murphy is a New Jersey Bankruptcy Lawyer with more than fifteen years of experience helping people get out of tough situations.