In most cases, a declaration of bankruptcy does not require you to sell your home or your car. The right to keep your home is meaningless, however, if you can’t afford the payments. Bankruptcy does not automatically change the terms of your mortgage or other loans. If you are afraid of losing your home or vehicle, you need to consider a mortgage or loan modification.
If you have fallen behind on your payments and are afraid of losing your home or car, the time to act is now. The Turnaround Team in Scottsdale, Arizona, can give you the advice you need on mortgage modifications, loan modifications, bankruptcy, short sales and other methods of dealing with debt problems. We can work with you to find the right solution.
– Brian M. Blum, Managing Attorney
Buying a home is not a one-size-fits-all proposition. Depending on when you bought your home, the terms of your mortgage could be wildly different than if you were buying the home today. A mortgage modification is simply a re-negotiation between your mortgage lender and you. If you are able to change the terms of your mortgage, you may be able to avoid foreclosure.
Modifying a mortgage can benefit you in several ways. If you owe back payments, you may be able to put the amount you are behind back into the principal of the loan and go forward making roughly the same monthly payment. In some cases, lenders will allow you to lower the interest rate you are paying or extend the length of the mortgage to give you lower monthly payments. The goal of the modification is to help you keep your home and keep up with your payments going forward.Get a Free Bankruptcy Consultation
Car loans, personal loans and other loans can also sometimes be modified to help people in financial trouble.
Take a care loan, for example. If you’re are not keeping up with car payments, your car may be repossessed. Your lender would much rather receive payments than take possession of your vehicle. If you would be able to make payments with a modification to your loan, the lender may consider this a good investment.
The key with any loan modification is to understand who to talk to, what information to present and how to present it. The Turnaround Team can help you with that.
Bankruptcy and Modifications
You do not have to declare bankruptcy to benefit from a mortgage or loan modification. That said, it is best to consider all your options, including bankruptcy, when you are having financial difficulties. Declaring bankruptcy while in the middle of modification negotiations can complicate the situation. You need the help of an experienced and knowledgeable team to put yourself in the best position
We offer a free, one-hour consultation to give you the answers you need before getting started. Loan and mortgage modification can be a difficult process, but it can be a vital part of taking control of your financial situation. If you are in danger of default and don’t know what to do, let’s turn it around.
Contact Us to Learn More
Worrying about foreclosure or default isn’t enough, you must take action. Contact our skilled attorneys online to learn more about your options in modifying existing loan obligations. You can also call us at (480) 420-1999 to schedule a consultation.