Are you in the midst of a loan modification program evaluation? Has your mortgage bank told you that your loan modification is being processed and there is no potential date of conclusion, but your file is looking really good? 6 months later, you still don’t have a confirmation of your loan mod and now they are asking you to start a trial loan modification program. Don’t let all these processes fool you into thinking that the bank doesn’t have their foreclosure department setting up a foreclosure sale of your property.
We have had several clients contact us who have been told that their loan modification application is being processed for HARP 2.0 or some other government loan modification program, only to find that there is still a foreclosure date scheduled for their home to be sold at auction. You still have options in this situation. A bankruptcy can postpone your foreclosure activities while you are in the loan modification process. You can stop the foreclosure and also eliminate all the debts that can be discharged in bankruptcy. If you need access to more time in your home in order to find out a result of a loan modification application or do save enough money to catch up to some debts, bankruptcy protection will help you meet your goal.
There are some things to watch out for. Each mortgage bank has different policies on how to deal with debtors which file for bankruptcy. Normally, it is easy for us to provide a simple authorization form which gives the banks permission to communicate with you regarding any negotiations related to your home loans. Without this permission to communicate with you, bankruptcy protection will usually stop banks from communicating directly with you, but once they have the authorization form, they can continue to work with you.
Don’t let the banks bully you into foreclosure. We can help. Bankruptcy Law Professionals has offices in Riverside, Tustin and Long Beach to help you. Contact us at (855) 257-7671.