Jump to Navigation

A mortgage modification may be an alternative to bankruptcy

Even though it may seem like the national economy is rebounding, many Tennessee families live with the threat of foreclosure looming over their heads. Foreclosure is the process through which a lender, such as a bank or other loan holder, reclaims an unfulfilled and generally delinquent mortgage and presumably evicts the mortgage holder from the premises. Families lose homes through foreclosure, and many foreclosure processes are brought about due to unexpected financial expenses, losses of jobs and other monetary crises.

Bankruptcy is one way that foreclosure can be halted. In bankruptcy, a stay is placed on the reclamation of loans as the bankruptcy court sorts out if and how the debtor will be able to pay off his debts. However, individuals facing foreclosure have other options, and one of those options is mortgage modifications.

According to the United States Department of Housing and Urban Development, a mortgage modification permanently alters the terms of a person's mortgage and changes it so that the individual can reasonably pay his outstanding financial obligation. In order to qualify for a mortgage modification a person generally must have experienced a significant change in financial stature; lending institutions have specific guidelines that they must follow when reviewing requests for mortgage modifications.

A person is limited to how many modifications he may make. Only one mortgage modification can be requested per 24-month period of time. Additionally, fees and foreclosure costs that the lender has already incurred can be wrapped up into the new mortgage after it is modified.

There are different ways to stop foreclosure. Bankruptcy offers certain benefits to those who wish to take control of their complete financial lives. However, when addressing a home foreclosure, a mortgage modification may be a sufficient remedy to keep a Tennessee family in its home.

No Comments

Leave a comment
Comment Information

What's Your Situation:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our Bankruptcy Website

Our Office Location:

Richard Banks & Associates

393 Broad Street, N.W.
Cleveland, TN 37364-1515
Map & Directions

Phone: (423) 244-0009
Toll Free: (866) 596-8527
Fax: (423) 478-1175

FindLaw Network

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.