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Experienced Bankruptcy Attorneys Assist Jacksonville-Area Homeowners with Mortgage Loan Modifications

Leveraging years of real-world experience to benefit you

Your home represents your dreams for your family, realized through years of hard work. The thought of losing your home can be frightening, especially when you’re teetering on the verge of bankruptcy. Fortunately, even if you can no longer afford to keep up your monthly payments, it is still possible to retain your home. The knowledgeable attorneys at the Law Firm of Carol Galloway help homeowners in Jacksonville and the surrounding communities understand their legal rights and options. We offer detailed advice and personal attention as we work to ease your financial burdens. One path to consider is a mortgage loan modification. We can help you negotiate a modification with your lender at any time, even during Chapter 13 bankruptcy.

Federal modification program can help you keep your home, even in bankruptcy

One step towards a modification is the Home Affordable Modification Program. HAMP, part of the federal government’s Making Home Affordable initiative, allows qualified homeowners to modify their mortgage so it is more affordable and sustainable for the long term. HAMP delays a lenders’ ability to foreclose on a property once an application for the program has been submitted. If your application is approved, all foreclosure proceedings must cease for a trial period.

It’s possible to qualify for a HAMP modification if you took out your mortgage on or prior to January 1, 2009 and your mortgage debt is not more than $729,750 on a single property. The property must also not have been condemned, and your current income must be able to support the modified payments. You’ll also need to demonstrate that you’ve suffered some sort of financial hardship resulting in the need modify your mortgage. Even if your HAMP application is denied, you will likely still have at least 30 days before a foreclosure sale can proceed.

Negotiating a mortgage modification during Chapter 13 bankruptcy

Chapter 13 is the provision in the U.S. Bankruptcy Code best suited to allowing a family to stay in their home. Chapter 13 does not require you to liquidate your assets to pay your creditors. Instead, Chapter 13 puts you on an approved payment plan for a maximum of five years, during which you repay a significant amount of what you owe and the remaining debt is discharged.

A major advantage of bankruptcy is the automatic stay, immediately upon filing, that prevents your creditors from taking collection actions against you. For homeowners, the automatic stay prevents a foreclosure. This provides you with time to negotiate a loan modification as part of your court-approved repayment plan. There is an important caveat: a bank generally will not approve a loan modification in bankruptcy unless you reaffirm the debt. That is, you must promise to continue paying on the renegotiated mortgage after the term of your repayment plan expires. Your mortgage cannot be part of the debt the court discharges. Undergoing bankruptcy, or committing to a loan modification through HAMP, are personal decisions you must base on the totality of your circumstances. We work to make sure you have the specific, detailed information you need to make the best decision, and then we help you implement an effective strategy to deliver the optimal result.

Meet with a dedicated attorney lawyer in Jacksonville to discuss your mortgage options

If you are at risk of losing your home in Florida, meet with a skilled bankruptcy attorney at the Law Firm of Carol Galloway as soon as possible. We serve clients in Jacksonville and the surrounding communities. Get started today by calling 904-356-7005 or contact us online.

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