Feed: Loan Modification Help Center – The Truth About Loan Modifications - AggScore: 14.0

While investigating loan modifications, odds are you will find all sorts of information on the Internet (whether on company websites, blogs, news sites or other sources) that give you all sorts of information.  Some of that information may be contradictory.  While it’s all well and good for different companies to produce different viewpoints, you probably need the type of information that will help you keep your home.

The truth is that a loan modification could be the help you need to avoid foreclosure and/or get your mortgage payments under control.  A loan modification is a renegotiation of the terms of your loan to lower your monthly payments.  By lowering your monthly mortgage payment, you can reach some financial stability and stay in your home long term.

Mortgage loan modifications are a better option than bankruptcy for many people, especially if you are trying to declare bankruptcy just to avoid foreclosure.  Bankruptcy has a negative impact on your credit, and that negative impact lasts up to a decade.  It’s sort of like dropping a bomb to kill a fly.  A loan modification can help you stay in your home without having a major mark against you for years and years.  A loan modification attorney can use the law to your advantage, and get a quicker response from your lender.  It’s a complex process, so having a loan modification attorney with you is a major advantage.  

Bankruptcies also affect other areas of your life, including lines of credit, car loans, jobs and even renting apartments.  A bankruptcy seriously scares off creditors, and if you do get a loan or line of credit your interest rate will be through the roof.  Bankruptcies are also not a sure fire way to avoid foreclosure, because it may not have the desired effect.  

People are desperate to avoid foreclosure however, which is why many turn to bankruptcy.  Foreclosure proceedings take a few months usually, and at the end you are not only going to lose your home, but you still may be on the hook for any debt owed on the house.  That’s a double whammy, and a crippling set of financial circumstances for most people.  Foreclosure is a scary situation for many, but a loan modification could be the answer to the situation.  A California loan modification could keep you in your home for much longer, in part because it incorporates the lender into the process.  A loan modification engages with the lender, negotiating new loan terms to lower the monthly payment.  

Many people ask why a loan modification attorney is necessary for the process.  There are actually a few reasons, all of which are beneficial to the homeowner.  Loan modification attorneys can negotiate with the lender on your behalf, utilizing their experience and knowledge to get the best deal possible.  Loan modification attorneys can use the law to get the best possible results, and to get a quicker response from the lender.  Loan modification attorneys are really a great resource, and have helped countless Californians stay in their homes.

Loan Modification Help Center is a free gathering place for resources and information on the rapidly evolving field of loan modifications. The internet is over flowing with information on this subject with the problem being that there can be as much bad information and advice as good. For a homeowner struggling with mortgage payments and facing the possibility of foreclosure, the importance of getting straightforward information with no agenda or ulterior motive is of utmost importance. The resources we make available at Loan Modification Help Center are just what homeowners need as they seek to understand their options and get the information they need to make the critical decisions involved in a loan modification. For more information visit loanmodificationhelpcenter.org.

Does bankruptcy stop the use of that persons income to do a loan modification?

Two people get a home loan, one goes full chaper 7 wipe out bankruptcy due to medical bills and major health issues. Co-borrower is determined to keep the home, and wants a loan modification. Does the bankrupt borrowers income still get counted even though that borrower is no longer legally responsible for the mortgage ? NOTE: Borrower and Co-Borrower are NOT married.

Answer
Unless a reaffirmation agreement was done in the bankruptcy, the Chapter 7 has wiped out the first debtors obligation to repay the loan so that the bank can only look to the second borrower that did not file. This means you do not need to list the income of the borrower that filed bankruptcy, but you can list it if they are helping borrower 2 in the repayment. I have had several cases where a client lists money received each month from family or friends to get them to the income level necessary to complete the modification. The bank will most likely want to see a history of the contribution though to establish that it is an income source that can be relied upon. I am a bankruptcy attorney in San Jose and Sacramento, California. As a lawyer, I represent debtors in Chapter 7 and Chapter 13 bankruptcies.