Loan Modification

Loan Modification

We focus on loan modification through the Chapter 13 Mortgage Modification Mediation program.

Loan modification requests outside of Chapter 13 paperwork focus on your current credit report, i.e. your current debt to income ratio to compute your monthly debt. The loan modification program entered into in conjunction with a Chapter 13 filing shows much more realistic figures which can shine a more favorable light on your request.

What is the advantage of applying for a loan modification inside of a bankruptcy?

Applying for a loan modification inside of a bankruptcy gives the loan modification process more structure, and other benefits. The bankruptcy can alleviate the concerns of the lender about your other outstanding debts, such as credit cards and medical bills. Additionally, if there are issues with an underwater second mortgage or an arrearage on your homeowner's association that may prevent a loan modification on your first mortgage, a bankruptcy provides different alternatives for resolving these issues, such as stripping the obligation off the property or curing a default.