I get calls daily from people who are seeking a home loan modification. Unfortunately, most lenders are not properly administering Federal and/or State programs for which they were given money by the government during the bank bailout. I always joke, there is no way that everyone who calls my office made up the same story, the facts are that the banks are telling their customers inaccurate information.
If you are told that you must be late on payments to get a loan modification, your are being told inaccurate information. Many times though, people are told this and feel they must miss payments to begin the process of seeking a loan modification. The problem is that everyone that contacts my office seems to get the same run around, i.e. not enough information was sent in, we need to update your information, etc… What happens is that a person falls so far behind and their home is in foreclosure. I have seen countless letters advising the modification cannot be given and/or there is simply not enough time to process, while your home is ready to be sold at the courthouse steps.
Unfortunately, the only way to insure you will not lose your home is to file a Chapter 13 bankruptcy, but you will have to pay all back payments on your home during the Chapter 13 plan period. It is paid back interest free. Waiting to long, while being told your loan is in review, many times places a homeowner in such a large hole the cannot financially afford to make both the Chapter 13 plan payment to catch up loan and maintain current payments.
There is nothing that prohibits a person from continuing to seek a loan modification while in bankruptcy, your bankruptcy attorney will advise the Court and seek approval if you are granted a modification. The issue is too not get too far behind to wear financially the problem cannot be fixed.
If you are frustrated in seeking a home loan modification, please feel free to contact Brandon N. Voelker, (859) 781-9100 (Campbell, Boone, Kenton, Pendleton) (859) 824-3361 (Grant), or email me at firstname.lastname@example.org. I will be glad to meet with you and provide a free consultation.