I have a number of prospective clients come in that are posted for foreclosure, and it is a common refrain from them that their loan modification application has been denied. The mortgage company "lost the papers" or claims to have never received them.

Or the client makes too little money, or too much money, to qualify for the loan modification. Anyway, if you want to keep your home you can't let the foreclosure sale take place! Here in Texas, at least on foreclosures by mortgage lenders, there is no right of redemption.

That is, legally you cannot force the mortgage lender to give you your house back after the foreclosure, even if you pay them all the money (unless there was a defect in the foreclosure sale) unless they agree to do so, which is very unusual. And the best way to stop the foreclosure sale for most people is to file a Chapter 13 bankruptcy. In Chapter 13, we can help you propose a plan to have a Chapter 13 Trustee begin paying the regular payments to the mortgage company again (they must accept them), and cure the delinquent payments.

The payments that you pay to the Trustee are typically deducted from your paycheck, through a mandatory payroll deduction lovingly known as a "Wage Order." And if your loan modification was wrongfully denied, you can still continue to pursue it while your are in Chapter 13. In fact, if you want us to help you with it, we are happy to do so. It is possible that you do not qualify for a "HAMP" or Making Home Affordable loan modification, but you may qualify for another type of loan modification.

So whatever you do, don't let the foreclosure sale happen. Come to me or another experienced bankruptcy attorney to file your Chapter 13 case BEFORE the foreclosure sale. If you wait until after, it is likely TOO LATE to save your home, like I say, except in very limited circumstances. Don't wait until it is too late.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
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