Avoiding Foreclosure with a Loan Modification

Avoiding foreclosure when you are behind on your mortgage payments may be harder than you thought if you and your lender are not on the same page. As bankruptcy attorneys, we are consistently seeing a lack of communication and understanding between mortgage servicers and their clients. We recently received the inquiry below on www.foreclosurelawfirms.com from a homeowner who has been trying to do a loan modification with Chase Bank.

" Last Year I wrote a letter to chase bank regarding my loan so that I could get a loan modification. They responded back asking for a lot of information. I got all the information they asked for, and waited. Then they gave me a trial period of 3 months, I made the trial payments, and then when I called to ask them what's the next step, Chase told me to wait and don't do anything. I waited for several months, not paying anything just like they had told me. I was doing what they told me to do. After several more months had gone by and multiple phone calls to them, they told me that thy were close to a modification and that I should have continued to pay. I told them if that was the case, they should have told me this from the start. So then when my modification was done, my payment amount was few dollars less, and my loan amount went from $450,000 to $500,000. I was in shock, so I called, and they told me because I didn't pay. I told them I was doing exactly what they had told me to do. Now my mortgage is $2500 plus property tax to make it $3200 and my loan amount is $500,000.00, while my condo is appraised at $443,000.00. I'm upside down on my place, and a lot do to the fact I listened to Chase. I'm trying to see if I should struggle to make some form of payments, or foreclose my condo and rent a house. My household income is $150,000 plus, but to make $4000.00 payments a month is too hard. If your Law Firm has any advice, I would appreciate it." 

While this may sound familiar to some, others trying to do mortgage loan modifications with their lenders need to know to plan for the best, and prepare for the worse. While some homeowners hire attorneys to assist them when attempting a loan modification, others go it alone. The important thing to remember is that the payments you're not making get tacked on to your principal balance. Additionally, many are declined a permanent loan modification after a trial mod period. Unfortunately, these people find themselves even closer to foreclose after working with their lender to try to avoid foreclosure. The moral of the story? Contact a bankruptcy attorney early in your financial struggle and know your options. The bankruptcy attorneys at the Law Offices of Zhou & Chini understand foreclosure defense and always offer free consultations at 12 locations throughout California. If you are trying to avoid foreclosure we offer free foreclosure defense information with and without filing bankruptcy. Please call us at (800) 972-9600  or visit www.ZhouChiniLaw.com.