subject: New Findings On Loan Modification Programs [print this page] So far, one of the biggest lenders in America has been rejecting 96% of all applications for loan modifications. President Obama introduced new legislation that was supposed to help the loan modification crisis. How did it turn out?
Not that well, it seems. The government wants to help 4 million families maintain a grip on costly mortgage payments. As of now, reports show that many more borrowers had canceled than were approved for a permanent 5 year plan. Cancellations went up by 21% and are going up even more.
Why aren't there more foreclosures if loan modifications work so poorly? Often times, during the process of applying for a loan modification a family is able to stay afloat. But this is only short lived. Economists predict that foreclosures will rise as soon as the number of people who have canceled their participation in the repayment program reaches 520,000. Many people who have canceled will not last long without help because of pay cuts, job loss, or medical emergency. Now, their home is at risk.
Little is different about loan modifications since the last time I wrote about it. Mortgage modification remains a more risky choice for protection from foreclosure. But, homeowners are in luck, because loan modification is not the only option available to help their struggles. If you might lose your home, a bankruptcy attorney could be the most helpful person for your situation.
A Chapter 13 bankruptcy may be able to get these people get protection from foreclosure. A Chapter 13 bankruptcy allows you to come up with a repayment plan that is determined by your specific circumstances. A bankruptcy lawyer can help you structure a plan that will allow you to repay you debts and fees within a 3-5 year period. With a Chapter 13, you can get protection from foreclosure, prevent your creditors from taking any more action against you, and take care of the rest of your debts.
Getting protection from foreclosure requires you to make tough decisions. You often must do whatever it takes to protect your family. A Chapter 13 bankruptcy book will give you more information to decide if a Chapter 13 bankruptcy is right for you. Remember, a lot of bankruptcy attorneys will offer you a free consultation but the best ones will offer you free information before you even set foot in an office. It is best not to pick an attorney that doesn't give you information before you have a consultation.
