What About Loan Modifications?
Choosing the Best Solution
Are you having trouble making your mortgage payments? Are you worried about losing your home in foreclosure? Many people struggling to make their monthly payments automatically dismiss bankruptcy as a debt relief solution and wonder if a loan modification can help them. Before you make a decision, speak with a skilled lawyer who can give you solid information.
My name is Maureen O’Malley. At my law office in Reston, Virginia, I help clients understand the difference between loan modifications and Chapter 7 bankruptcy. My goal is to give you the information you need to make an informed decision regarding how to best avoid foreclosure.
Loan Modifications Are Difficult to Obtain
A loan modification, or a change in a contract agreed to by both lender and borrower, can be helpful. If you are able to move from an interest-only mortgage or an adjustable rate mortgage to a conventional mortgage with a lower interest rate, you will be able to save a good deal of money.
Unfortunately, these loan modifications have several drawbacks, including:
- The application process is complicated and lengthy
- Applications are often denied or don’t offer enough help
- There is no foreclosure protection while you wait for the lender to approve or deny your application
- There is generally a 3-month probationary period in which if you are late on a payment, the modification is revoked
Bankruptcy Can Save your Home
Filing bankruptcy immediately stops all foreclosure action. With Chapter 7 bankruptcy, most of your unsecured debt, such as credit cards, medical bills and personal loans, are discharged. This frees up money for your house payments.
Experienced Attorney Protecting Your Interests
If you are facing foreclosure or are concerned you may miss a mortgage payment, contact me online or call me locally at 703-483-9639 or toll free at 888-353-2098. I will analyze your situation and explain your options. My office is conveniently located off Sunrise Valley, between Wiehle and Reston Parkway.
I am required to disclose that I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.