When you are facing foreclosure, bankruptcy may still be the best option for you to get the situation back under your control. If you are past due on payments on your home, the bank has rights to foreclose on your property if they follow the proper rules and procedures. Unfortunately, your rights in a loan modification or any other loan renegotiation are not as clear. Some banks will say they are putting you in a loan modification “trial period” to give you a chance to prove that you can make the adjusted modification payment. This situation sometimes gives false hope into believing that your adjusted new mortgage payment from the loan modification is close to becoming a reality. Since there is not much guidance in government rules or regulations regarding loan modifications, this false hope in securing a loan modification may have little chance of working out. Even after contributing to the “trial period” payment plan, the bank may change all the terms listed in the loan modification pre-qualification program and decide not to adjust your loan as much as you expected or even adjust it in anyway at all. Currently, there are no specific rules against this type of activity. So, even in a loan modification situation, you are not in control of the whole situation. The resulting activity by the bank may still push you into foreclosure and the loss of your home.
The final punch in the face is contributing more to the banks’ trial loan mod program only to lose more money to them that does not show up on any statements or help pay back any debt or help get a loan mod. The only way you can get back in control is to let your bank know that you have filed a bankruptcy to stop their foreclosure proceedings. Whether you file a Chapter 7 or Chapter 13, bankruptcy protection will stop your foreclosure. Contact Bankruptcy Law Professionals to find out what the best path will be for you to stop your foreclosure. Even if you already have a sale date or trustee sale date assigned to your home, it is not too late to stop the foreclosure proceedings. We have helped many clients in this exact situation. You can be confident that we have the experience to help you and your family.
Here is a very interesting article on why banks are more likely to foreclose on you than settle or cooperate with you: http://realestate.aol.com/blog/2011/10/18/mortgage-prof-why-banks-foreclose-instead-of-settling-for-les/?icid=maing-grid10|htmlws-main-bb|dl6|sec1_lnk2|105578