We’ve all heard the phrase “mortgage modification.” Just what is a mortgage modification? It is an often illusory carrot dangled before the eyes of a harassed borrower.
Many homeowners have, in the past, used the equity in their homes to fund and maintain their lifestyles. As a result of the upheavals in the real estate market, they are now faced with a house that is worth less than what is due on their mortgage(s). Other homeowners find themselves locked into high rates of interest when current market rates are significantly lower. Theoretically, the bank/lending institution will work with you to restructure your mortgage so that i) either the payments are reduced to make them affordable, or ii) the amount of the principal balance due on the mortgage is reduced to the actual value of your home.
Regrettably, the banks and/or lending institutions will not just lower their mortgage rates. That would require a new mortgage application and, because the homeowner’s finances may be less than stellar or the home in question has lost value, may be an impossibility. The only alternative is to seek a mortgage modification.
An industry has arisen catering to the potential mortgage modification market. Unfortunately, many in the so-called mortgage modification business are unscrupulous and homeowners’ horror stories abound. Tales of applications being compiled and submitted numerous times are the norm. Applications disappearing in the mortgage modification maze of bureaucracy have become the standard. It is not unusual for a homeowner’s application to take years to process, only to be rejected.
In an ideal world, a mortgage modification is a simple concept and an effective means of regaining control of your finances. In the real world, the current mortgage modification system is often daunting and inexplicable. There are few government programs that offer mortgage modifications and all efforts by Congress to confer such powers on the Bankruptcy Courts remain in legislative limbo.
With over 30 years of experience representing debtors, the Law Office of Barry R. Levine knows the ins and outs of the system, what can and cannot be accomplished and, most significantly, whether or not you are a candidate for a successful mortgage modification. We are committed to working with your lenders in pursuing a mortgage modification that will keep you and your family in your home for years to come.
The Law Office of Barry Levine – – providing clear solutions for your financial confusion for over thirty years!