Loan modifications are designed to help make your mortgage payments more manageable for your financial situation. It’s understandable that unexpected financial burdens might make your loan modification unaffordable for a period of time.
If you’ve defaulted on your loan modification or are at risk of falling behind on payments, there are options that can help you save your home from foreclosure. There is no one-size-fits-all solution. The best option for you will be tailored to fit your specific needs.
A loan modification attorney can help you explore all your options to save your home. Contact Denbeaux & Denbeaux Law today to learn more about how we may be able to help you avoid foreclosure.
Apply For A Second Loan Modification
If you’ve already had one loan modification, you could apply for a second, or third, loan modification to make your mortgage payments more affordable. Eligibility for additional loan modifications depends on your lender’s rules, how long it’s been since your last loan modification, and the specifics of your financial situation.
Loan modifications can be a good option for dealing with mortgage payment issues because they allow you to work with your existing lender to find a solution. Having a good relationship with your mortgage lender is always a good thing.
Even if you’ve had a previous loan modification, you may be able to get another. Every lender has different rules, so speaking with an attorney can help you understand if this is an option for you.
If you’re not eligible for another loan modification at this time, your lender might be able to offer you other options to help with your mortgage. Sometimes, lenders are willing to work with homeowners to find short-term solutions for financial hardships.
File For Chapter 13 Bankruptcy
Filing for bankruptcy can be a last resort strategy to avoid foreclosure if you’ve already exhausted all other options. While a Chapter 13 bankruptcy can stop foreclosure, it’s not recommended because of its negative impact on your credit and mortgage.
A Chapter 13 bankruptcy would stop any foreclosure proceedings where they are and allow you to stay in your home. When your bankruptcy is finalized, you could end up being ordered to make an arrears payment towards your mortgage default as well as your normal mortgage payment each month. If you’re having trouble making your mortgage payments, adding an additional monthly mortgage payment might not be affordable. Bankruptcy also hurts your credit. A Chapter 13 bankruptcy stays on your credit report for seven years, making it difficult or even impossible to get any other credit during that time.
Contact A Foreclosure Attorney
Worrying about foreclosure can be stressful and overwhelming. It’s understandable that you might feel like you don’t have options. If you’re facing foreclosure, even if you’ve already had one loan modification, there are options that can help you make your mortgage payments more manageable and allow you to keep your home.
A foreclosure attorney can work with you to help you find the best option for your situation. An experienced attorney can present you with various options for your specific financial situation and help you determine the best fit for your life.
Joshua Denbeaux is a New Jersey foreclosure attorney who fights to protect consumer and homeowner rights. Contact us today to learn more about how we may be able to help you avoid foreclosure and stay in your home.
