Dayton Bankruptcy Attorney Handles Mortgage Modifications

If you can afford to make a mortgage payment going forward (even if it's not a full mortgage payment), a loan modification and a mortgage pay rate reduction is a possibility. A loan modification involves demonstrating to the lender that a temporary situation caused the borrower to fall behind on the payments, but that the situation has been resolved completely and the borrower is eligible for a mortgage rate reduction. A loan modification typically requires proof that the borrower earns enough household income each month to make a mortgage payment.

Loan modification is also a great solution for a borrower who wants to stay in their property, but can't afford the payment to adjust upward, or can't quite afford the current mortgage payment. In that situation, a mortgage rate reduction is an ideal solution because it will lower the monthly mortgage payment to a manageable amount. Loan modification is also a solution when the payment has not been made for a while, but the borrower can now afford to start making payments again.

The type of loan modification that is most beneficial to a borrower behind on mortgage payments is called a “re-capitalization agreement.” A re-capitalization agreement takes all the arrears, interest, fees, and accumulated payments and adds it to the principal of the mortgage loan. The result of this negotiation is a slightly larger principal loan amount, but a status of “current” on the mortgage loan payments going forward.

As an alternative to a mortgage pay rate reduction, if you are unable to make payments at the current rate, we can often negotiate with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level.

A loan modification will change your existing mortgage loan and give you a fresh new start in managing your home. Your account will be brought up to date immediately.

If you need help with a loan modification or would like to see for what government loan modification or government refinance programs you qualify, please contact us for a free consultation.

Thompson & Deveny Co., LPA, assists clients with Divorce, Estate Planning, Family Law, Personal Bankruptcy, Probate & Estate Administration, The New Bankruptcy Law, Predatory Lending and Consumer Law matters in the State of Ohio, including the counties of: Champaign, Clinton, Clark , Darke, Greene, Miami, Montgomery, Preble, Shelby and Warren; and the cities of: Urbana, Mechanicsburg, St. Paris, Wilmington, Sabina, Springfield, New Carlisle, Enon, South Charleston, South Vienna, Greeneville, Versailles, Bradford, Arcanum, New Madison, Beavercreek, Fairborn, Wright Patterson Air Force Base, Bellbrook, Xenia, Jamestown, Cedarville, Bowersville, Troy, Piqua, Covington, Dayton, Vandalia, Centerville, Riverside, Kettering, Miamisburg, West Carrollton, New Lebanon, Huber Heights, Oakwood, Englewood, Trotwood, Clayton, Germantown, Brookville, Eaton, Eldorado, West Manchester, Camden, Somerville, New Paris, Sidney, Russia, Houston, Botkins, West Chester, Lebanon, Springboro, Franklin, Carlisle and Waynesville.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.