Chapter 13 Bankruptcy And Loan Modifications
It is very common for people with mortgage problems to also have other debt overload problems. It is also natural for mortgage holders to believe that keeping their homes is a top priority. Therefore, many potential clients of Ben Sissman, Attorney at Law, arrive at the door of our law offices determined to seek loan modifications while simultaneously considering bankruptcy.
It Can Be Done
In fact, filing Chapter 13 while applying for a loan modification is not unheard of, and you may believe that it makes sense in your case. However, in my years as a bankruptcy law attorney, I have very rarely seen loan modifications go through the way people hope they will. Every bank has its own rules and loan modifications tend to become paperwork nightmares with no resolution.
It May Well Not Be The Best Option
Everyone’s situation is different. Careful reflection of all factors — including a debtor’s priorities with regard to a home — often helps a debtor see good options more clearly. I often help my clients discover the best path forward with this question: “Can you envision living someplace as suitable as your current home at an affordable monthly rent?” Many of them answer yes.
Many decide to let their homes go in bankruptcy rather than apply for loan modifications, go through foreclosure or otherwise fight the inevitable. Many are able to buy homes within a year or two of bankruptcy with market-rate interest. The pursuit of a loan modification becomes much less attractive in light of other options, for many of my clients.
Free Initial Consultation | Chapter 13 Bankruptcy Attorney In Memphis
The law office of Ben Sissman is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.