Can Loan Modifications Help Me Get Protection from Foreclosure?

So far, one of the biggest lenders in America has been rejecting 96% of all applications for loan modifications. President Obama introduced new legislation that was supposed to help the loan modification crisis. How did it turn out?

Not that well, it seems. The government wants to help 4 million families maintain a grip on costly mortgage payments. As of now, reports show that many more borrowers had canceled than were approved for a permanent 5 year plan. Cancellations escalated 21% and are predicted to continue to rise.

Why aren't there more foreclosures if loan modifications work so poorly? Sometimes, a family is above the water during the application process of a loan modification. But this is only short lived. As soon as the number of people who cancel their loan modifications nears 520,000, experts think the amount of foreclosures will dramatically increase. Many people who have canceled will not last long without help because of pay cuts, job loss, or medical emergency. Now, their home is at risk.

Little is different about loan modifications since the last time I wrote about it. It still is a riskier option for protection from foreclosure. Struggling homeowners are lucky because there are choices aside from loan modification to help them with their mortgages. If you might lose your home, a bankruptcy attorney could be the most helpful person for your situation.

A Chapter 13 bankruptcy may be able to get these people get protection from foreclosure. A Chapter 13 bankruptcy allows you to come up with a repayment plan that is determined by your specific circumstances. A bankruptcy lawyer can help you structure a plan that will allow you to repay you debts and fees within a 3-5 year period. A Chapter 13 bankruptcy can get you protection from foreclosure, prevents creditors from harassing you, and help pay off other debts.

You need to do whatever it takes to keep your home. You might need more information on Chapter 13 bankruptcy to decide if it is the best option for your family. Just because a bankruptcy lawyer offers you a free consultation, doesn't mean he or she is the best attorney for your case. Look for an attorney who will offer you free information and make it readily available online. It is best not to pick an attorney that doesn't give you information before you have a consultation.

About The Author Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy at http://www.castlelaw.net