Filing Chapter 13 While Applying for Loan Modification
Filing Chapter 13 Bankruptcy While Applying for Loan Modification
Foreclosure Prevention in Indiana
As an experienced bankruptcy law firm, we have seen too many people fall victim to unscrupulous lenders. In some cases, mortgage lenders take advantage of homeowners by offering loan modification programs that do not benefit the homeowner in the end.
The lawyers at Redman Ludwig, P.C., represent people who are seeking to save their homes from foreclosure. We sometimes recommend to homeowners who have applied for mortgage loan modification that they also file Chapter 13 bankruptcy. This prevents the homeowner from falling further behind on their mortgage payments as they are waiting for an answer from their bank or mortgage lender.
Protect Your Home When You Apply for Loan Modification
You can apply for a loan modification and file Chapter 13 bankruptcy simultaneously to keep further mortgage debt from accumulating. We can review your mortgage terms and assess your financial situation to determine whether this is a good approach for you.
When homeowners apply for loan modifications, their lenders may not approve or deny their applications for several weeks or months. Whether this is an intentional delay or not, the result is that the applicants are getting into more trouble because they are not making mortgage payments during this time.
If the lender denies the modification application, it may foreclose on the property and sell the house. Filing Chapter 13 halts the foreclosure process and prevents the lender from charging you additional late fees.
You can remain in your home while the bankruptcy is in progress. If you successfully complete Chapter 13, you will avoid foreclosure.
Indianapolis Bankruptcy Attorneys
For a free telephone consultation, please call 317-800-6181 or toll free at 866-660-6928, or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.