Reno Loan Modifications
If your monthly mortgage payment is taking such a huge bite out of your income that it is difficult to keep up your mortgage and make all your other living expenses, the Reno attorneys at Darby Law Practice, Ltd. may be able to help you by advising you of ways to reduce your interest rate and lower your monthly payments.
In the wake of the recent housing market crisis, the federal government created a slew of programs under the heading of Making Home Affordable. One of these programs, the Home Affordable Modification Program (HAMP), provides a means for homeowners to enter into negotiations with their lenders to obtain a loan modification. The eligibility for HAMP has recently been expanded, so that you may qualify even if your debt-to-income ratio is less than 31% or if you are seeking a modification on a home that is not your primary residence.
Even though a bank may be participating in one of these programs, and even though it may have accepted bailout money from the government, there is nothing in the law that requires a lender to agree to any sort of a modification. There are, however, rules regarding what the banks must do to ensure that their involvement in the process is substantial and meaningful. We can help make sure the banks participates within the letter and the spirit of the law.
If you are already in default on your mortgage, then you may also able to negotiate a loan modification through participation in the Nevada Foreclosure Mediation Program For non-mortgage loans, we may be able to help with debt settlement or dealing with tax debt in a Chapter 7, Chapter 11, or Chapter 13 bankruptcy.
It is important to understand what a loan modification can do and what it can’t do. Most often, a successful loan modification is one that brings your payment down to a range of 31% to 39% of your monthly income. This is usually done by reducing your interest rate and in some cases extending the loan repayment term to up to 40 years, which will also reduce your monthly payments. However, if you are looking to a loan modification to write down your mortgage to the current value of the property, you should know that it is almost unheard of for creditors to forgive debt as part of a loan modification. This can be done in bankruptcy, so it is important to consider all of your options with an experienced bankruptcy attorney at Darby Law Practice to find the solution that is right for you.
Reno Loan Modification and Bankruptcy Attorneys
By most accounts, most of the several government-backed mortgage modification programs have not lived up to their promised and helped enough homeowners. However, loan modification may be a viable option to save your home. Where bankruptcy is the better option, we can assist you there as well. Contact Darby Law Practice in Reno for a free consultation to explore your options