Declare bankruptcy, Lose your Home, or Modify your Loan—One is a no brainer!
Bankruptcy is like creating 10 years of bad luck for yourself, and since most financial forms have a checkbox to ask if you ever declared bankruptcy you really never get away from it. It should be considered very carefully with the advice of a bankruptcy expert. Losing your home to a short sale or just giving it up to the bank is not something to be taken likely either. These decisions need careful consideration. If you are in financial trouble and just a little in the negative a loan modification is a no brainer. At least for 5 years or more you can usually significantly reduce your monthly payments and maybe even get some loan reduction to boot. Loan modification is not for everyone; but for most, it can really help in staying above water and keeping your home because in most cases it can reduce your monthly expenses and help you stave off bankruptcy. If reducing your monthly payments can get you slowly caught up with the rest of your finances and stop your drain on your credit cards to try to pay for your basic bills; then reducing one of your largest expenses which is your mortgage payment can really help you stay afloat.
Here are some typical modifications you can achieve by yourself but usually best with a loan modification expert (there are no promises or typical cases but these are achievable most of the time):
· Reduction in your monthly payment is almost always achieved and not by a little but by a great deal depending on your situation. You see the bank wants to keep you in your home because you will protect their investment better than most and they do not want to lose with a short sale that will drain them of interest profits and in today’s market incredibly potentially lose them principle.
· Reduction of your interest rates by a significant amount infrequently below 1%.
· Reduction in your principle infrequently particularly with second and third mortgages that no longer have much equity on the house and would lose everything on a short sales.
If you are upside down each month by say $200 with your mortgage payments and the rest of your bills and expenses and doing a loan modification can reduce your monthly payments on the loan including the taxes and other fees by $500 this can not only put you in the black again but give you room to start catching up with your credit card debt. Speaking of the credit card debt, this too can be helped a great deal without having to file for bankruptcy and our firm might be able to help you with this as well.
These are desperate times, but because of their desperation there are also things you can do to help you improve your chances to keep your home and live a life with pride that you are a good citizen and pay your bills and still have a little giggle room—and a loan modification may be a huge step in helping you achieve the point where you can afford to keep the house and pay for your bills. Most loan modification firms like ours have a free consultation for the initial visit so take advantage of it and talk to us how we might be able to help you keep pride in your home and your ability to provide for yourself and your family!