Mortgage loan modifications are being utilized more often to make mortgages more affordable for homeowners.
In a mortgage loan modification, the mortgage company essentially re-writes the home loan voluntarily. The new note may reduce the interest rate on the loan, recapitalize any arrearage into the new principal, reduce the principal, convert an adjustable rate mortgage to a fixed rate mortgage, or any combination of the above.
But this process is completely voluntary by the mortgage servicers and it can be a frustrating and seemingly endless process for homeowners. Quite often a mortgage servicer will string a homeowner along all the while preparing to foreclose on the property.
Bankruptcy brings the possibility of completely removing (or “stripping”) second mortgages off your home if certain circumstances exist.
An attorney can be helpful during this process to help you sort through options and to preserve your rights. Call our office and we will provide a free, no-obligation consultation to discuss your situation.
Some background information can be found here: www.makinghomeaffordable.gov