Mortgage Modification and Bankruptcy
Borrowers who fall behind on their mortgage payments can now talk to a Pittsburgh bankruptcy lawyer about their situations. When a lender initiates a foreclosure action or requests a short sale or deed-in-lieu of foreclosure, borrowers are wise to review their options with an experienced Pittsburgh bankruptcy attorney.
Mortgage companies typically offer loss mitigation or modification opportunities. Qualifying borrowers may see their interest rates lowered, principal balances reduced or mortgage term extended so that the monthly payments become more manageable. In some instances, mortgagees may recapitalize mortgage arrearage so that a borrower can pay them over time. Mortgage modification applications are highly detailed and lenders typically will not render any decision without a package that is 100% complete with current versions of all documents requested. Many borrowers find the application process confusing. While borrowers often attempt to modify their mortgage without the assistance of a lawyer, an attorney who practices in the area will typically have experience that a borrower does not.
The United States Bankruptcy Court for the Western District of Pennsylvania also sponsors a loss mitigation program. That particular program has been very successful and is well-moderated by a skilled and caring judiciary.
Looking for a way to save your property from foreclosure—chapter 13 bankruptcy may be the answer. Unlike debtors in chapter 7 bankruptcy, debtors in cases under chapter 13 with a regular source of income to repay their creditors some or all of what they are owed over a period of three to five years. For debtors who have acceptable mortgage terms but who have fallen behind on their payments and need time and space to become current, a chapter 13 case can help. When a debtor needs both time and better mortgage terms, a chapter 13 case coupled with participation in a loss mitigation program may be a debtor’s best opportunity to save their home and get a fresh start.
Do not wait until it is too late to save your home. Call a Pittsburgh bankruptcy lawyer skilled in in court and out of court loss mitigation and mortgage modification matters today.
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