Mortgage Assistance Lawyer in Southfield, Michigan
Many clients at the bankruptcy law firm of Sheryl A. Shoebottom, PLLC, negotiate modifications of their home loans at the same time as they file Chapter 7 or Chapter 13 bankruptcy paperwork. The purpose of a home loan modification is to decrease the monthly payment amount of your mortgage in order to give you a better chance of catching up with delinquent mortgage payments.
When you hire bankruptcy attorney Sheryl A. Shoebottom, you can rest assured that your bankruptcy lawyer will carefully monitor the timing of all events related to your bankruptcy filing, including the negotiation of your home loan modification.
At Sheryl A. Shoebottom, PLLC, your experienced bankruptcy lawyer works closely with you as you request mortgage assistance or a loan workout. Schedule a free consultation at Sheryl A. Shoebottom, PLLC. Call toll free 888-343-9145 or use the online contact form.
Types of Mortgage Modifications That May Be Available
Home loan modifications change the financial terms of a current mortgage, with the goal of helping homeowners come current on their mortgages and avoid foreclosure. The three most common types of mortgage modification programs are:
- The Home Affordable Modification Program (HAMP): Under HAMP, also called the Obama Plan, your bank may agree to modify your mortgage if it can find a way to lower your monthly payments to 31 percent of your gross monthly income. To accomplish this 31 percent goal, the bank will consider extending the loan term to 30 or 40 years or lowering the interest rate to as low as two percent.
- FHA Loans: The Federal Housing Administration (FHA) has a mortgage modification program similar to HAMP for borrowers with federal home loans. The FHA also offers a loan modification program called partial claim. In the partial claim program, the mortgage arrearage — usually up to one year's worth of past-due payments — can be placed into a separate second mortgage with no payments due.
- Internal Modifications: If you do not qualify for HAMP and do not have an FHA loan, your bank may still agree to change the terms of your home loan. This is often called an internal modification. The bank may choose to reduce the interest rate, roll the past-due payments back into the principal, or extend the loan term.
Learn More About Mortgage Modification and Consumer Bankruptcy
If you have fallen behind on your mortgage payments, the best time to seek legal advice is as soon as possible. Do not wait until you receive a foreclosure notice, if at all possible. The sooner you get help from an experienced bankruptcy attorney, the more debt relief options you will have.
Schedule a free consultation with attorney Sheryl A. Shoebottom. Call toll free 888-343-9145 or contact the firm online.
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