Have you defaulted on your modified mortgage? You’re not alone.
According to a Washington Post article back in April, homeowners who are struggling and received loan modifications are defaulting on their mortgages at “an alarming rate.”
The Home Affordable Modification Program (HAMP) was created by the Obama administration in 2009. It’s function is to serve as a lifeline for the millions of homeowners facing default. The program provided $75 million to help lenders reduce borrower’s monthly payments to 31% of their income.
However, the mortgage reductions have not been sustainable and at the end of March this year, more than 312,000 homeowners had defaulted on mortgages modified under HAMP.
“This is a significant problem,” said Christy Romero, special inspector general for the Troubled Asset Relief Program (TARP). “When homeowners fall out of these modifications, all of a sudden they’re facing huge mortgage payments. If they can’t afford it, they’re going to get foreclosed on.”
You don’t want to lose your home and we don’t want you to either!
If you’re behind on your mortgage payments, please consider filing a Chapter 13 bankruptcy. By doing so, you can keep your home while reorganizing your debts and paying an affordable payment over a span of (usually) five years, rather than all at once. During this span, all creditor and collection harassment must stop.
And keep in mind, your payments would be based on your modified mortgage payment.
Are you considering filing for bankruptcy? Let us help! Our experienced lawyers can sit down and discuss your situation with you, free of charge, and help guide you to your best decision.
Bankruptcy is nothing to be afraid of, especially when you’re at risk of losing your home. Filing can lead to a fresh start and a new life. It can create the foundation in which you can begin building your credit the right way.
We have the resources to help with that too by offering an exclusive 14-week program that will teach you how to re-establish and rebuild your credit the right way.
At Darrell Castle & Associates, we care about our clients and want to see them happy. We want to help them get to the better life that a bankruptcy can bring.
If this is you or if you have any questions, please contact us today. You can call us at (901) 327-2100 or contact us online.