Home -> Law Blog Directory -> Bankruptcy Blogs -> Arizona Bankruptcy Attorney Blog

Bankruptcy

: Arizona Bankruptcy Attorney Blog

Do Mortage Modifications EVER Work?

By Joseph McDaniel, Esq.

Well, sometimes.

But you might have better odds of a successful result in Vegas.

In general, I hear the following things from my clients when they come to visit: the mortgage company lost my paperwork three times, the process took a full year before they turned me down (or approved me), and I was a success in my mortgage modification but they raised the payment by $40 dollars a month.

And even if you get the mortgage payments modified under whatever cockamamie scheme the mortgage company has cooked up, one question is what the future holds.

Since some people have predicted that home values will drop another 25% before they hit bottom (and I believe that), I don't see a lot of existing home/mortgage combos as lasting for a very long time.

Now, even if a mortgage holder walks away from a mortgage, there's some chance that they won't have to file a bankruptcy if they're protected from a deficiency and a tax consequence by some statute or another. Unless, of course, there's a second mortgage, because second mortgages don't have much of a sense of humor.

A lot of the folks who are chased into my office are chased in by a lawsuit from the formerly Friendly Mortgage Company, which is now a wholly-owned subsidiary of the Unfriendly Collection Company.

Oh, well.

Someday the depression will be over.

And someday we will have jobs again, for decent pay, here in the United States.

But not just yet.

Full post as published by Arizona Bankruptcy Attorney Blog on March 31, 2011 (boomark / email).