San Bernardino Loan Modification
Filing for a San Bernardino Bankruptcy may not always be necessary, depending upon your financial circumstances. If you are otherwise able to pay your bills, and you aren’t too far behind on your mortgage, you may be able to negotiate directly with your mortgage lender in order to resolve the situation. San Bernardino Loan modifications are becoming more common in this economy, with lenders scrambling to prevent yet another foreclosure on their books. So if you’ve had a minor financial setback, or a temporary financial hardship, loan modification may be the answer.
No two San Bernardino loan modification packages are the same. For some individuals, the mortgage lender may reduce the interest rate, or allow you to pay back your arrears over time. For other individuals, the lender may move the past due payments to the end of the loan, reduce the principle owed on the house to more closely match market conditions, or forgive the missed payments entirely. Still other lenders may decide to approve temporary forbearance, allowing you to stop making your mortgage payments during your short term financial difficulty.
On the plus side, loan modifications can help you to prevent having a San Bernardino bankruptcy on your credit report if you are able to make payments regularly once the modifications have gone through. Additionally, a loan modification may make your house easier to sell in the current market, especially if home prices have fallen in your area. Lastly, having your loan modified by the bank is less complicated than having to work out the repayment details in a San Bernardino bankruptcy court.
While San Bernardino loan modification programs can prove highly beneficial, they won’t help you to rein in other debt. So if you are having problems paying all of your bills and not just your mortgage, a loan modification may only delay the inevitable. Additionally, a loan modification requires that you have a solid relationship with your mortgage lender – which may not be the case if you’ve had difficulties making payments in the past. Lenders typically assess whether or not you are a good repayment risk before working on a loan modification package, so if the lender believes that you still won’t pay even if modifications are made, expect to have a tougher time renegotiating.
If you aren’t certain that you can qualify for a loan modification, your best option is to contact the lender and ask. If you are in the midst of foreclosure and the loan modification process is going slowly or stalled entirely, you may consider contacting a reputable San Bernardino County Bankruptcy Attorney right away. A Chapter 13 bankruptcy filing will put a stop to your lender’s foreclosure proceedings, but it need not stop your negotiations. If you are able to work out a payment plan that will keep you on your feet, you may even be able to dismiss the San Bernardino Chapter 13 filing before it is completed. Speak with one of our trained San Bernardino County Bankruptcy Law professionals in order to find out how the law will apply in your case.
Contact us today and let us schedule your free initial San Bernardino Bankruptcy case evaluation. Even if you don’t qualify for a loan modification under your lender’s rules, filing for Chapter 13 may be able to help you stay in your home and make up lost payments via a court approved repayment plan.