People generally understand how to attack their debts. Lets be honest. It is not rocket science to set out a budget and stick to it. Many of the people I meet with at Halcomb Singler, LLP have contacted creditors to let them know the payment is not in the mail in an attempt to negotiate an acceptable and affordable payment plan. It is also common for a potential client to tell me that they are in the midst of a mortgage modification with the lender on their home. Often the potential client has submitted documents again and again to the loss mitigation department of their home lender. Each time another letter comes in the mail asking for the same things again and again with no answer regarding whether the homeowner qualifies for the mortgage lender's modification program.
Here's the good news. I have seen clients receive mortgage modifications. Sometimes this allows them to avoid filing bankruptcy and sometimes it is still necessary to file bankruptcy, but the new lower payment insures that the house will be affordable after the bankruptcy. Additionally, in Indiana when your lender files a mortgage foreclosure you are entitled to request a settlement conference with the lender prior to the entry of a judgment if the house is your primary residence. In some cases the homeowner is able to reach an agreement with the mortgage company that makes sense for both parties.
Unfortunately, that's the end of the good news.....for now. But keep reading future posts because I am hoping that mortgage companies might be exercising the common sense that my clients have complained about for years. Specifically, clients always tell me that they don't understand why the mortgage company won't work with them. Why would the mortgage company want more houses?? I couldn't agree more. It seems to me that there is no business-oriented reason that mortgage companies would not prefer to obtain a payment and interest from a client rather than to sit on yet another home in this lackluster real estate market.
A few weeks ago I read an article about mortgage companies offering homeowners substantial cash payouts to executed a deed in lieu of foreclosure. A deed in lieu of foreclosure typically relieves a homeowner of liability for the mortgage and transfers ownership of the house to the bank. The story followed a homeowner who had received $30,000.00 to move out of her house and deed it bak to the bank. Let me be clear. Other than in the article I have never heard of this happening. I am hoping that the article was factually correct, but I cannot be sure. But the article did give me hope that potentially there MIGHT be some reason to believe that banks are seeing the light and beginning to realize that they should use smart business to deal with the numerous foreclosures they are seeing. Only time will tell if anything has actually changed regarding the way banks handle their mortgage foreclosures/homeowners who fall behind on their mortgages.
Even in light of this small potential bright spot, I urge homeowners not to hold their breath to see if they receive a letter from their mortgage lender promising cash for a deed in lieu.....and even if they did make sure you see an attorney to make sure that the agreement you sign actually reflects your understanding of the agreement. I would urge homeowners to operate under the impression that their bank will do nothing to assist them with their mortgage arrearage and then to be pleasantly surprised in the event the bank is helpful. Don't wait until the last minute to seek legal advice regarding a bankruptcy or mortgage foreclosure because even though a bankruptcy can be filed to stop a sheriff sale, potential arguments in a mortgage foreclosure case can be barred after too much time has passed.
If you live in Indianapolis, Carmel, Tipton, Zionsville, Fishers, Noblesville or the surrounding areas and would like to set up a free initial consultation with me regarding bankruptcy and whether it may be helpful to your home mortgage situation feel free to click here or call Halcomb Singler at 317-575-8222 for an appointment.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
This is indeed a very good. By reading this post, you will come to know about different finer aspects of modification, bankruptcy and alternatives to foreclosure. Here it is to be noted that in addition to mortgage modification, two good options available before you so as to avoid foreclosure are short sale and deed in lieu of foreclosure. In short sale you are offered the chance to sale your property at a price which is less than the amount of the mortgages that you owe. In case of deed in lieu of foreclosure you transfer your property to the lender in exchange for being released from the mortgages.
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