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Mortgage Loan Modifications and Chapter 13 Bankruptcy

Mortgage Loan Modification Lawyer in Cary, North Carolina

Mortgage Loan Modification Lawyer

If you find yourself struggling to afford mortgage payments, you have options to get your debt under control. A mortgage loan modification lawyer can help borrowers avoid default or a foreclosure process by obtaining lower, more affordable payments.

For over 20 years, the loan modification attorneys of Sasser Law Firm have worked on behalf of those struggling to pay mortgages and other debts.

What Are Mortgage Loan Modifications?

Loan modification is when a lender and borrower agree to change the terms of a loan agreement. Borrowers typically apply for a mortgage modification when they have difficulty making the required payments on the loan.

Although loan modification programs are typically made for property mortgages, any type of loan can be modified, such as student loans, personal loans, or credit card debt. Ultimately, with a loan modification program, you may result in a payment that you can afford, giving you better control over your finances.

How Do Loan Modifications Work in Cary, North Carolina?

A loan modification process serves to reduce the borrower’s monthly payment by modifying the original loan agreement in one or more ways, such as the following:

  • Extending the loan term so that the borrower has a longer period to pay off the balance
  • Reducing the interest rate charged on the principal balance
  • Forgiving missed payments or a portion of the principal
  • Adding past due payments into the principal of the loan

A borrower typically must apply to their mortgage lender to obtain a mortgage modification. In a loan modification application, the borrower certifies that they cannot afford the current monthly payment due to financial hardship. They must provide personal and financial information so the lender can determine whether they can still afford a lower monthly payment that the lender would be willing to accept.

What to Do If Your Loan Modification Is Denied in Cary, NC

If your mortgage company denied your modification application, you can take the following steps to hopefully get your request ultimately approved:

  • Determine why your application was denied Your lender will send you a letter explaining why they denied your request for a loan modification.
  • Correct the reasons for the denial Once you have determined why your modification application was denied, you can take action to hopefully fix those reasons.
  • Re-apply Lenders will typically give you the option of resubmitting a loan modification application once you have taken steps to address the reasons for the original denial.
  • Talk to a loan modification lawyerIf you can’t get a loan modification approved, a loan modification attorney can help you decide if bankruptcy is a smart option.

When Should You Consider Filing for Chapter 13 Bankruptcy in Cary, NC?

Although there are some benefits of loan modification, you may not be eligible for one. It also just may not be your best option if you are struggling with mortgage payments. As an example, you may have other problematic debts such as credit cards, taxes, medical bills, or student loans that need to be addressed in addition to the mortgage issue.

Filing for bankruptcy may be a strategic solution that may allow you to keep your home and vehicle. You’re granted an automatic stay when you file for Chapter 13 bankruptcy. This provides immediate legal protection from your creditors. You then work through a plan to repay some portion of your debt, but it gives you protection and structure, and some flexibility to work towards a solution. The substance of a Chapter 13 plan varies based on a number of case-specific facts such as assets, household income, and type of debt.

If you’re trying to decide if bankruptcy is the right choice for you, one of our board-certified bankruptcy attorneys can review your situation and recommend the best course of action for you. At the consultation level, our loan modification attorneys will try to estimate what a plan payment amount would be in order to assist in the decision-making process.

Can You Modify Your Mortgage Loan after Filing for Chapter 13 Bankruptcy in Cary, North Carolina?

Through the process of filing your bankruptcy, it may still be possible to make modifications to your loan. This can help you and your creditors determine what monthly payment you can realistically afford.

Some debtors will strategically decide to file Chapter 13 bankruptcy to avoid foreclosure and then negotiate a loan modification. Sometimes the pause on collections is necessary to have time to consider all of your options.

Talk to a Mortgage Loan Modification Lawyer in Cary, North Carolina Today

Don’t spend another day struggling under the weight of debt. Contact Sasser Law Firm to learn more about how the bankruptcy option works and how our modification lawyer can help. Give us a call or reach out to us online today for a free consultation.

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