The Danger Behind Loan Modifications
A lot of folks these days are running into problems paying their mortgages. One of the ways that they think they can get help and protection from foreclosure is through a loan modification. Now, I've been writing about loan modifications a lot recently because they are a big problem. A loan modification sounds great, but the problem is very few people actually get one.
Many people think that, after applying for a loan modification, they will get new terms on their mortgage and be able to keep their house. The sad truth is that most families that apply for a loan modification never qualify in the first place. And in many cases—those that do get approved for a "trial" loan modification are then unable to make their modified payments or are unable to have their trial modification made permanent.
Why are loan modifications so unpredictable—and why are they hurting so many people? Now I'm going to tell you what the banks don't want you to hear. While a lot of folks are able to APPLY for a loan modification, there's nothing to guarantee that applying for a loan means they actually qualify. Many hard working families that think that a loan modification can save their home are actually ineligible.
A major reason for the loan modification crisis is that you have to be behind on your mortgage to be eligible. Even more, while you wait for your application to be approved, the bank tells you not to make payments. The application process can take several months as well—so you go for a long time without making payments and fall further behind on your mortgage. After you find out you were ineligible for a loan modification, you may find yourself needing protection from foreclosure because you got behind on your payments.
So, what are your options? One option is to walk away. Unfortunately, you can be stuck with a lot of debt after walking away. Walking away from your home could leave you in debt if your mortgage value is more than the price at which you sold your house.
Not such a good idea, right? Is there something better? Yes! You may be able to get protection from foreclosure by looking into a Chapter 13 bankruptcy. Even more, a Chapter 13 bankruptcy has the ability to stop harassing creditor calls and wage garnishments.
Your best bet is to seek out an experienced bankruptcy attorney who can help you decide if a Chapter 13 bankruptcy is right for you. The best bankruptcy attorneys are going to make sure to give you as much free information and materials as they can before you ever set foot in their office.
About the Author
Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has recently released his latest free report. You can request the report at the Castle Law Office website: http://www.castlelaw.net
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