Stated Income Mortgage Loans

Loan modifications and the real world

As a Long Island bankruptcy attorney we speak daily with homeowners seeking advice about loan modification. The request is usually is part of a bankruptcy consultation in which the prospective client asks if their loan modification process will be impacted by the filing of bankruptcy. The concern seems most often to be that they want to be sure they can change the terms of the mortgage before they address the problem of their credit card debt.

There is a sad truth about loan modifications and the companies that offer to provide them. That truth is that the vast majority of these self-proclaimed “loan modification” firms are simply frauds. If you do a small amount of research you many times will find that the same address as the loan modification company has, will share that of a debt settlement, debt consolidation, and perhaps auto loan modification firm. In short, nothing more than a telemarketing office, selling the next “hot” product in demand by the consumer.

The truth is that your lending institution is under no legal obligation to change the terms or amount of your mortgage. Government programs which have been set up to help homeowners modify their loans have been dismal failures, most notably the much hailed Obama “Making Homes Affordable” program has been one of the largest wastes of taxpayer money.

If you are considering a loan modification because of pressing financial circumstances, your best vehicle may very well be a Chapter 13 Bankruptcy. An experienced Long Island bankruptcy attorney can evaluate your situation and may be able to remove your second mortgage as part of the filing. In addition, there are many other tactics and methods that only a skilled attorney can provide. Contact your Long Island bankruptcy attorney before it’s too late. Many times while your loan modification sales person is telling you all is well, your lender is preparing foreclosure papers to serve you. You should always consult with experienced law firms in these matters.