Modifying Your Mortgage With The Bank
So many homeowners are on the edge of foreclosure as they try to pay for mortgages that are quickly becoming unaffordable. Many homeowners facing foreclosure want to know if they should attempt to modify their mortgage with the bank or file for bankruptcy. It’s a tough call.
Your decision to modify your mortgage through your bank depends on a few factors. Are you in imminent danger of foreclosure? Are you already delinquent on paying your mortgage? Do you have other financial disasters waiting to happen besides foreclosure? If you’re facing imminent foreclosure and have other financial issues, attempting to modify your mortgage through the bank can be a challenge.
First of all it’s difficult to quickly get in touch with the right person who has the power to modify your mortgage and avert a foreclosure. Many modification program rules require you to already be significantly delinquent in mortgage payments before they will consider modifying your mortgage.
Also, the modification process may take a long time and a foreclosure may move forward while you’re in the process of negotiating a mortgage modification. If you’re facing foreclosure and want to attempt to modify your mortgage through the bank, it’s best to have a back up plan that can be put into action at a moment’s notice.
That’s where bankruptcy can help. Bankruptcy can stop the foreclosure process in its tracks, therefore speaking with a bankruptcy attorney about bankruptcy may be a good course of action, just in case the modification process is too long and foreclosure moves forward despite your modification efforts.