The Law Offices of Dax J. Miller may help you get a mortgage loan modification on your home or investment property. Contact us for a free consultation today.
A mortgage loan modification is just that — the mortgage company revises your mortgage to give you a more affordable payment. This may involve:
- Reducing your loan amount to more closely reflect what the property is worth;
- Reducing your mortgage interest rate; and/or
- Extending the total number of years that your mortgage may be paid back.
A favorable modification of any of these terms typically allows you to reduce your total monthly mortgage payment. Contrary to public opinion, you may seek a loan modification whether you are behind on your mortgage or not. Ultimately, the only requirement is that you want a better, more affordable deal.
A mortgage loan modification may be pursued in several different scenarios:
- You may retain our firm to work directly with the mortgage company on your behalf to seek a mortgage loan modification;
- We may file you in a Chapter 7 Bankruptcy to discharge your other debt which sometimes makes you appear more favorable to your mortgage company; or
- We may file you in a Chapter 13 Bankruptcy to use the Chapter 13 Bankruptcy Trustee loan modification program.
Each scenario offers various advantages in disadvantages in terms of success rate, time and cost.
Working directly with your mortgage company for a mortgage loan modification
A benefit of working directly with your mortgage company for a loan modification is that you do not need to spend your time and money on a bankruptcy filing to get what you want. This is a great option for people with no other debt that needs to be addressed. However, you should have little to no mortgage delinquency to avail yourself of this option.
Chapter 7 Bankruptcy combined with a loan modification
If you need a mortgage loan modification and you have other debt that you also need to address, then Chapter 7 Bankruptcy combined with a loan modification may be the best option for you. This method involves filing and completing a Chapter 7 Bankruptcy to eliminate your other debt. Then, after the Chapter 7 Bankruptcy has concluded, we initiate loan modification negotiations with your mortgage company. By and large, our experience reveals that where a mortgage company failed to offer a loan modification before, your Chapter 7 discharge warrants another review of the account.
Chapter 13 Bankruptcy Court loan modification program
Finally, the Chapter 13 Bankruptcy court loan modification program may be an excellent option for you. The Chapter 13 Bankruptcy Trustee has developed a simple, streamlined procedure that may allow you to obtain a loan modification under the supervision of the Federal Court system. Consequently, using this method generally allows for a more uniform, efficient submission of documents. Naturally, the end result amounts to less time and money spent by you. Moreover, the Chapter 13 Bankruptcy allows you to strip off second mortgages, eliminate IRS or Indiana State income tax debt and pay off delinquent property tax debt. This is all done with the intention and effect of you exiting the Chapter 13 Bankruptcy with your home safe and secure and otherwise free from liens that could jeopardize your home ownership.
