How to Get a Loan Modification After Bankruptcy?

It seems many people are a little confused as to the nature of their home mortgage

after they file or have gone through a bankruptcy. Many people still want to know if they apply for a loan modification after bankruptcy to help aid their finances.

There are two types of people in this discussion. Those with only one home that is their sole major asset and those individuals who have two or more houses that they possess.

In the case of the first individual the person needs to find if the bank discharged the loan under the bankruptcy claim. This is usually what happens. Being so, if your loan was discharged in bankruptcy you are no longer legally responsible for the debt. So there is no reason for a loan modification after bankruptcy if this is an unsecured debt. If the bank did not discharge the debt, then one could potentially apply for a loan modification. If they reaffirm their debt. (More on that later).

The second person with two or more houses has a little bit more of a dilemma to deal with. See some people are filing bankruptcy on one house loan thinking they will be able to keep up payments on the other only to find out later that they can't make it happen. The only way one can then get the other loan modified that wasn't filed under bankruptcy is to reaffirm their debt. Reaffirming debt is a catchy subject with varying opinions. Reaffirming debt means you will take on the previous debt that you had accrued. Usually this is truly not feasible because if it was then most people wouldn't have filed in the first place. Yet, if you want to get a loan modification after bankruptcy it is required.

Reaffirming old, dusty debt is usually not a wise move, say financial experts. "As a general rule for consumers, the presumption should be that it's never a good idea to reaffirm debt, particularly in bankruptcy," says Jack Williams, resident scholar for the American Bankruptcy Institute.

However, if you affirm the debt you would be able to do a modification. One should really find someone who is informed in this process because it is complicated and creates issues for you if you reaffirm the debt and decide you do not want the debt because the modification turns out not to be what you want.

Your in a difficult situation, so make sure you know what you want and make sure what you want is attainable. Loan modification after bankruptcy can be a tricky subject and should be a matter not taken lightly. Talk to your spouse and other family members before making huge decisions that will affect everyone involved. With patience you will pull through either way.

If you're looking for a reputable company to assit you with loan modification after bankruptcy please visit Fast Loan Modification Help, enter your contact information and you will be put in touch with a Loan Modification Specialist that can address any concerns you may have.

How to Get a Loan Modification After Bankruptcy?

By: John Hughes

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