How will mortgage modification help me save my home?
The bills pending in front of both houses of Congress will allow bankruptcy judges to modify your loan(s) on your home. That will mean a reduction of interest and reduction of the monthly amount you have to pay.
The bills pending in front of both houses of Congress will allow bankruptcy judges to modify your loan(s) on your home. That will mean a reduction of interest and reduction of the monthly amount you have to pay.
Who qualifies for mortgage modification under this new law?
Anyone with a home loan where a notice of foreclosure has been sent or where there is a notice from the lender that foreclosure notice is about to issue.
Anyone with a home loan where a notice of foreclosure has been sent or where there is a notice from the lender that foreclosure notice is about to issue.
Does it change the interest rate I have to pay?
One of the biggest reasons to give this authority to bankruptcy judges is to allow then to change the interest rate charged and end the Adjustable Mortgage rates that
One of the biggest reasons to give this authority to bankruptcy judges is to allow then to change the interest rate charged and end the Adjustable Mortgage rates that
Does it change the amount of my monthly payments?
The bill gives judges the authority to define the amount of the loan owed as secured or unsecured, and to require the repayment of only the secured portion. That could significantly reduce your monthly payment.
The bill gives judges the authority to define the amount of the loan owed as secured or unsecured, and to require the repayment of only the secured portion. That could significantly reduce your monthly payment.
Does it change the amount I owe on my house?
As noted in #4 above, if a judge defines only part of your loan as secured, it may not reduce the amount you actually owe, but it can reduce the amount of the loan you have to pay back since a portion of it will be treated as unsecured.
As noted in #4 above, if a judge defines only part of your loan as secured, it may not reduce the amount you actually owe, but it can reduce the amount of the loan you have to pay back since a portion of it will be treated as unsecured.
What happens to the 2nd mortgage?
Bankruptcy judges now have the ability to determine that a second mortgage is only an unsecured debt and therefore subject to discharge. This won’t change, and any time the first mortgage is reduced, the 2nd will be defined as unsecured.
Bankruptcy judges now have the ability to determine that a second mortgage is only an unsecured debt and therefore subject to discharge. This won’t change, and any time the first mortgage is reduced, the 2nd will be defined as unsecured.
Who can help me do this?
Although you can file for bankruptcy by yourself, the process to do this will be complicated and may even involve a hearing or trial on the value of your property. You should have a competent bankruptcy attorney to help you.
Although you can file for bankruptcy by yourself, the process to do this will be complicated and may even involve a hearing or trial on the value of your property. You should have a competent bankruptcy attorney to help you.
Do I have to file bankruptcy?
Yes. If the new law passes only a bankruptcy judge will have the authority to modify a loan. The lender can do it on their own, but they haven’t done so very often when it has been voluntary process.
Yes. If the new law passes only a bankruptcy judge will have the authority to modify a loan. The lender can do it on their own, but they haven’t done so very often when it has been voluntary process.
Will bankruptcy ruin my credit?
Filing bankruptcy will certainly affect your credit. Often the dip in your score, however, will be short-lived and you will be able to repair it quickly.
Filing bankruptcy will certainly affect your credit. Often the dip in your score, however, will be short-lived and you will be able to repair it quickly.
What if I filed for bankruptcy already?
Although there are current limitations on when you can file for bankruptcy once you have already done so, these limits will be lifted under the new bill to allow you to save your home.
Although there are current limitations on when you can file for bankruptcy once you have already done so, these limits will be lifted under the new bill to allow you to save your home.
What do I have to do to make this happen?
Write your representatives and your senators. Tell them you want and need this legislation to avoid losing your home. How to find your representatives.
Write your representatives and your senators. Tell them you want and need this legislation to avoid losing your home. How to find your representatives.