Many of our clients do not realize that it is possible to still modify a mortgage on a home while in a Ch. 13 bankruptcy. Recently a program in the Middle District of North Carolina has been enacted to aid Ch. 13 clients in modifying their home loans while in Ch. 13. With the Loan Modification Management program the loan modification is managed by your bankruptcy attorney and a third party modification company. This can help ease the stress of loan modifications which is often times the biggest hurdle in a loan modification.
A loan modification is when your mortgage company works with you to help you keep your house by modifying your existing loan. Hopefully the modification will allow the homeowner to have lower payments when the modification is approved and final. Normally, the way the loan modification works is by stretching out the length of the home loan and also lowering the interest rate. The largest benefit in most loan modifications is that the lender will stretch out the back payments of the loan over a new 30 or 40 year period. This can allow you to catch up on a house payment that you are seriously delinquent on and also make it affordable to do so. Here at Wootton and Wootton we can help guide you through the loan modification process while in a Ch. 13 and explain the benefits and detriments of the loan modification process.
Recently the loan modification process has worked for clients who are severely behind by stopping the foreclosure process and setting up a reasonable monthly payment to retain the home. The Loan Modification Management program allows a client to start out a Ch. 13 bankruptcy with a much lower payment than previously possible. It is also good to remember that we can file the bankruptcy to stop the foreclosure sale even after the sale has taken place. It is always a good idea to call and discuss your options as soon as you obtain a foreclosure notice. We have seen that this Loan Modification Management program really helps clients buy the time in their home they need. It is a great tool to help clients make the right decisions for their future. Here at Wootton and Wootton we will be happy to discuss your home loan modification options with you and find out if the Ch. 13 bankruptcy is your best option.