If you are currently in the middle of a bankruptcy, you may think your future seems uncertain. According to Fox News, there was a time at the height of the mortgage crisis in the United States that many judges were seeking the power to force lenders into loan modifications or loan principle reductions so that bankruptcy filers could keep their properties. This was a noble effort, but it was not something that was successful.
Despite the fact that many attorneys and judges tried to get laws passed which would force creditors to agree to loan modifications that brought a home down to the fair market value, nothing actually changed. According to Fox Business, bankruptcy judges were not given the power to require a lender to modify a loan or reduce a loan principal, which meant that the many bankruptcy filers continued to lose their homes even after they tried to save them by filing and trying to pay off their debts.
In a slumping economy, it has been difficult for thousands of Americans to make ends meet, and a loan modification could be the benefit that they need to get through. In some states, attorneys are currently filing lawsuits against lenders that are claiming that loan paperwork is faulty and that homeowners have been issued predatory loans. Normally, this is because the homeowners have been rejected for the prospect of a loan modification and they now feel stuck.
Some attorneys have been successful in arguing on behalf of the borrower and proving that he or she has the right to a loan modification. If you are currently dealing with this issue, then it is best that you hire an attorney to advocate for you in your bankruptcy proceedings as well. With the right convincing and hardworking lawyer on your side, you will be able to head to court equipped and may even be able to deliver a convincing case that will grant you the loan modification that you desire.
If you are not granted a loan modification the first time that you apply in the midst of a bankruptcy, you always have the right to reapply. While some homeowners are hesitant to reapply for a loan modification, there are times that this may be your best option. With the help of an experienced lawyer, you may be able to accurately and convincingly fill out the loan modification application.
A few minor details may be enough to cause your acceptance or rejection, so it may be essential for you to hire a bankruptcy lawyer to show you how to best fill out this application while still being honest and accurate. It is essential for men and women who desire a loan modification to remember that there are no “insider” ways to get a loan medication granted. If you are told that someone as an “in” with the bank, or can help you with “connections” then you are being life to.
According to one financial professional, there is no magic to the loan modification process. Because the court does not have the right to force a loan modification, it is purely a paper campaign. If you qualify for one of these modifications, then you will be able to experience the benefits. If you are not accepted for some reason or another, then you will need to reapply and make sure that you have submitted all paperwork that is needed. With the right attorney on your side to help you keep all paperwork together, you may be at a greater advantage. Hire a local bankruptcy attorney today if you want assistance with this endeavor.