Have you applied for a mortgage modification? If you have, you may have experienced a long, arduous process. The processing agency or financial institution may request your paperwork on three, four, or as many as six different occasions. Some New Yorkers who have come to our law firm have suggested that the mortgage processing companies are hiring imbeciles.
Long Delays
Why does the process have long delays? The reason for the long delays is the banks have failed to hire sufficient employees to properly process mortgage applications. The banks also didn’t take into consideration the length and depth of the financial crisis facing this country. The high unemployment rate, the down sizing of jobs and the recessionary problems in the United States have caused thousands and thousands of Americans to apply for mortgage modifications. The banks simply did not take into consideration the volume of mortgage modification applications they would be receiving.
Mortgage Modification Denials
There are a variety of reasons why your mortgage modification may be denied. The single largest reason for denying mortgage modifications is the financial institutions claiming you didn’t provide them with all the necessary paperwork. This is the most frustrating denial, especially when you provided the paperwork to them on several occasions and they simply lost or misplaced it. A second reason for denying mortgage modifications is that you have too much debt. If the financial institution feels you already have more debt that you can handle, they will turn down your mortgage modification application.
Insufficient Income
Another reason why many mortgage modification applications are denied is the failure to have sufficient income to support your financial obligations.
Bankruptcy
You can discharge debt through filing bankruptcy proceedings. You can go through the bankruptcy process and thereafter file a mortgage modification application. At the end of the bankruptcy, you will have eliminated your debt and you therefore may be a superior candidate for a mortgage modification at that time.
Second Mortgages
There are situations where a family’s mortgage modification application on their first mortgage is approved. However, they may still have a non-performing second mortgage. In these situations, you may be able to discharge your second mortgage by filing bankruptcy. A Chapter 13 bankruptcy can eliminate your second mortgage.
We can fight your foreclosure. We litigate predatory lending issues, defective foreclosure lawsuits, and defective mortgages. We attend foreclosure court conferences for our clients. We draft mortgage modifications and deal with mortgage modification programs that fail to meet our clients needs.
We also litigate foreclosure related bankruptcies, whether they’re a Chapter 7 bankruptcy or Chapter 13 bankruptcy. We also assist our clients in re-establishing credit after filing a bankruptcy. We can help stop your foreclosure from moving forward! Call us and we will provide you with a free consultation. We will discuss all of your foreclosure options.
