I WAS OUT OF WORK FOR A FEW MONTHS AND FELL BEHIND ON MY MORTGAGE. I TRIED TO GET A LOAN MODIFICATION BUT I WAS DENIED. CAN YOU HELP ME?
Many of Mr. Taieb’s clients have been turned down for loan modifications prior to filing bankruptcy. However, a lot of clients don’t even realize that a loan modification may not be the answer.
An Alternative to Loan Modification
For example, if you are approximately $10,000 behind on your mortgage payments, you may be able to do a Chapter 13 plan that will help you save your home without adding a larger balance to your mortgage balance.
If you are behind on $10,000 on your mortgage but not behind several thousand dollars, Mr. Taieb can propose a plan of approximately $300 per month for the next five years to cure the mortgage arrears and resume mortgage payments the next months after you file.
The Pros and Cons to Loan Modification
A loan modification will help several people but may not be the best answer in all circumstances, especially if you have no equity in your home. A loan modification will add the money you are behind and place it at the back of your mortgage and possibly extend your mortgage another 30 or even 40 years.
For some clients, this is extremely beneficial since it helps people save their home if they cannot cure the mortgage arrears over 60 months, since their arrears are several thousand dollars and they cannot propose a feasible repayment plan under Chapter 13.
On the other hand, some people know they will never live long enough to pay the loan modification, so they accept it even though the terms are flagrantly poor, since when they die, the home will just go to foreclosure.
A Personalized Solution
At TAIEBLAW, every client is an individual with a unique set of circumstances, so we look at what best suits the individual client.
Also, even though people were denied a loan modification outside of bankruptcy, Mr. Taieb has had people who were rejected for years get loan modifications—but there is never any guarantee.
Thus, whatever your circumstances are, contact TAIEBLAW at 856-235-4994 to learn your options.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 34 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.