Government and lender mortgage modification programs have resulted in little success at helping people permanently modify home loans. Many debtors tell of lenders losing paperwork, not responding to inquiries, misunderstanding modification program requirements and offering modifications that do little to respond to their needs.
There are options available to people facing foreclosure. Some debtors have successfully challenged a foreclosure based on improper servicing by the lender. Others have used Chapter 13 bankruptcy to cure mortgage loan defaults and perhaps strip off second mortgages with no equity. Not everyone will be able to make a Chapter 13 work but it should be one of the first options considered when foreclosure is started. Unfortunately, many people wait too long before finding out whether bankruptcy will work for them. Trusting that a lender will offer a realistic modification right up until the day of a sheriff’s sale, some people have lost their homes rather than consult with a bankruptcy attorney sooner in the process. Don’t let that happen to you. If you’re facing a foreclosure don’t wait until it’s too late to consider all your options for saving your home.