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What About Home Loan Modification?
You have undoubtedly heard about the several plans to stem the tide of mortgages passed by Presidents Bush and Obama. These bills initially looked promising but have turned out to be more political than anything else. The banks have a much bigger lobby than the obligation to represent their constituants possessed by the politicians. The government cannot simply allow the principal reduction in loans that would otherwise be able to be collected by the banks. To do that would compromise all of the campaign contributions made by the banks.
What the most recent bill has come down to is that you have to qualify for the loan modification by proving your mortgage payment is a gigh percentag of your income. If you are able to do that when compared to the governemnt standards, the banks can lower your interest rate or extend the term of the loan in order for you to afford your payments. It is seldom when they will reduce the principal, so you will still end up paying more than your house is worth if you have no equity. This will fix the amount of your payment, but not the amoutn your houuse is worth compared to what you owe.
Bankruptcy is also a federal program. Bankruptcy will, in certain cases, allow you to strip the second or third liens off of your home leaving only the first mortgage and discharging the rest. Bankruptcy is the ONLY program that will force your mortgage company to discharge the mortgage and remove it from the secured debt against your home. If you owe a lot more than your home is worth, or if you have multiple loans secured against your home, you owe it to yourself to schedule a free consultation with our experienced bankruptcy attorneys or contact a local bankruptcy lawyer through www.wantafreshstart.com or www.bankruptcyattorney-lasvegas.com.
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