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

According to a report in Housingwire.com, foreclosure mitigation programs have assisted 1.8 million homeowners, and millions more have been benefitted because of better mortgage servicing brought on by the program. The website article reports that 1.2 million homeowners have received permanent loan modifications since the MHA program started in 2009.

I have had quite a few of my Houston clients receipt loan modifications, but also quite a few that have been disappointed. In fact, I probably receive more of the people that have been turned down for one reason or another, and are facing foreclosure. Then with no other options, they come to my law firm to file a chapter 13 bankruptcy, to stop the foreclosure and allow them up to five years to bring the loan current.

But even after a bankruptcy filing, we encourage and assist clients to file for loan modifications, not only to bring their loan current, but to reduce the interest rate, extend the term of the loans to reduce the payments, or seek other relief like principal reduction or other relief.

According to the article, the top three mortgage servicers for the month of September were Bank of America, CitiMortgage and JPMorgan Chase.

What experience have you had getting a loan modification?


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