The Trouble with Loan Modification Programs

People will pay thousands of dollars pursuing a loan modification agreement only to find that these programs are partially, if not completely, fraudulent. Many of these people are hardworking homeowners who diligently made all their monthly mortgage obligations while doing everything asked of them in order to avoid foreclosure and remain in their home. Some homeowners who have entered into one of these agreements have ended up getting sued for foreclosure anyway, often waiving their right to any legal defense as part of the actual agreement.

Many lenders realize the desperation of the homeowner and prey on such desperation. This can often result in agreements that are extremely one-sided or misleading. When entering into any type of agreement like this, it’s absolutely essential to have good council.
When you’re entering into a situation that involves imminent foreclosure, the first option, of course, is to attempt reconciliation with the lender in order to modify the original loan agreement. If this isn’t successful, the only available recourse other than complete foreclosure may be bankruptcy.

Even if you are in the midst of a loan modification evaluation, bank may still foreclosure on your property. Many clients have been told their application is being processed, only to find later that there is still a foreclosure date scheduled. However, even in this situation you may have options. A bankruptcy could postpone your foreclosure while eliminating the debts usually discharged in these proceedings. When you need access to additional time in your home while you await the results of the loan modification application, bankruptcy protection can help you meet this goal. Click here to read why bankruptcy may not
be as bad as you think.

Unquestionably, with a wrongful foreclosure case, all of the rulings are not going to be in your favor. Therefore, it’s more important than ever to make certain your rights are fully protected and all options are disclosed. For this reason, consulting with an experienced bankruptcy attorney is often the best course of action.