Thursday, May 4, 2017

Two Alternatives When Mortgage Modification Doesn't Work

When money is tight it is critical to find a way to loosen up the budget and make your money stretch as far as it is needed. One way to free up funds is to lower your biggest payment, which is typically your house payment. You can do this by refinancing, or by getting a modification of your mortgage loan. A mortgage modification lowers your interest rate, and that in turn lowers your payment. But not all requests for mortgage loan modifications go through, so you need to know what your alternatives are when looking for ways to get out from under burdensome debt.

Two options for debt relief when a mortgage modification doesn’t work are:

         Filing for bankruptcy, either a Chapter 7 or a Chapter 13 case. A Chapter 7 case will wipe out all of your unsecured debt, which means you will not longer have to make payments on your credit cards. Next to mortgages, credit card payments can be the highest debt a household has to meet each month. A Chapter 13 bankruptcy is more like debt consolidation, and some of your unsecured debt will have to be repaid. Just how much of your unsecured debt has to be repaid depends on your particular circumstances, and we can review your case to let you know what to expect.
         Working out agreements with your lenders for lower payments, either temporarily or on a permanent basis. This type of financial restructuring is usually the result of a settlement reached in litigation, whereby a creditor will agree to reduced payment terms or to accept a lump sum for less than the balance due, as payment in full for a debt.
If you are being sued by your lenders, give us a call. We will work for results that you can live with, and explore all of your options. We understand bankruptcy is not right for everyone, and if that is the case then we will negotiate on your behalf for acceptable repayment terms through litigation or other legal proceeding. But if bankruptcy will work for you, we will get it all prepared and explain the benefits to you. Our job is to give you a thorough explanation of your choices, and help you be successful in whatever choice you make for your money.

For more information about mortgage loan modifications, call us today or reach us online at We will help by coming up with solutions that work for you and have multiple locations for more convenient one on one office visits.

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