If In Trouble With Mortgage and there is time, apply for Loan Modification through HAMP

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

I still have some people coming into my Houston law office, that have bad mortgage loans taken out before 2007. Some of them are "predatory" loans, with either high interest rates or Adjustable Rate Mortgages or ARMs. These interest rates fluctuate according to the underlying index, which is oftent the LIBOR or London Interbank Offered Rate.

If you need help with your mortgage, consider applying for help through the government's Making Home Affordable program. They have a number of different programs available, at least if your mortgage "servicer" or mortgage company participates. If you apply for a Loan Modification, your interest rate may be reduced and changed to a fixed rate, and they can also extend the term to as long as 40 years, roll delinquent payments into the loan, and do other things to make the loan affordable for you.

But if you are trouble with your mortgage and you have been denied a loan modification, you may want to consider filing chapter 13 bankruptcy. It allows you to catch up delinquent payments through three to five year plan, and also get control of any other debts that you have, assuming you qualify.

If this is what you are interested in, call our office in Houston at 713-772-8037 for an appointment with us. The first visit is free of charge, and we can usually begin your chapter 13 case for a small down payment, with our attorney fees included in your plan, to make them more affordable.