Wait, They’re Putting in Foreclosure?
It’s a home, not just a house:
I doubt anyone ever did a loan modification on an Igloo. Odd housing around St. Charles County maybe, but a man’s icy hut is his castle and fortress. And that man doesn’t want to lose it just because he went through a few bad months financially. The problem is, however, that a few months behind may very well mean it’s foreclosure time. When that happens, you’re searching for help, for options, for relief. The two main options; are mortgage modification and Chapter 13 Bankruptcy, and neither is an easy task to accomplish.
The Scenario: You’ve paid every penny that you can toward your mortgage. You’ve struggled through months of last-minute payments, neglecting other expenses to get the mortgage paid, and have had a good history of payments for years. You’ve heard of this “mortgage modification” program that is out there, even contacted the bank several times to get information, but as happens many times, that’s going nowhere.
“Modification Schmodification!”
Mortgage Modifications
Great if you can get it done, dangerous to rely on. The bank tells you “You may qualify”, or “as soon as you’re far enough behind” but seems to forget to tell you how long to be behind, and when you’re actually going to get there. “Far enough behind,” you ask yourself, “doesn’t the bank want me to stay as current as I can.” They’ve sent the paperwork, and you’ve returned it, sometimes multiple times, and apparently, it got lost, or it wasn’t right, or whatever other non-sense reason the voice on the other end of the phone, the so-called “specialist”, claims. It all seems to be a big intentional confusing mess, and I would suggest, it is!
Behind on mortgage payments to qualify for a mortgage modification? Sounds like a bad idea you’re thinking, “if someone’s behind on mortgage payments, don’t they start foreclosure’. Yes, they do! It’s a conflict that exists in the system, on one hand, they tell you that you don’t qualify for the modification, and on the other hand, well, you’re behind so you know what follows… Foreclosure! If you’re one of the lucky, they’ll modify before they foreclose. If you’re in the majority, you’ll lose the house, plain and simple.
Options to Foreclosure
If you can modify your mortgage, fantastic. If not, it is crucial that you know that a Chapter 13 Bankruptcy will stop that foreclosure, and will give you time to catch up while keeping your creditors and bay. Seeking Chapter 13 help is a first resort, but it is a resort you need to know about when that modification fails, and the bank has informed you that a foreclosure is pending. Click here to learn more.
