Alan White recently reported "Million homeowners have been lured into temporary payment plans with false promises of permanent loan restructuring. After 11 months, only one in ten has had their mortgage permanently modified. More disturbing is the fact that these one million homeowners in trial mods, i.e. short-term payment plans, were given a deadine of January 31 to convert to a permanent mod. Treasury reports that about 33% of those who have been in trial payments for three months or more have missed payments. The other two-thirds are making their payments. That means that more than 500,000 homeowners are in trial modifications, making payments on time, but about to be kicked out of the program, presumably because of missing paperwork."
If you are going to save your house bankruptcy is about the only way to make it affordable. Look at the numbers. Bank of America has only completed 3200 loan modifications since the inception of the HAMP program. This statistic is frightening in light of the fact that they took over most of the Countrywide Loans. Many of the Countrywide loans were predatory and so declared by California's state attorney general in a lawsuit instituted in 2009.
There is just no way around us. President Obama has abandoned bankruptcy reform that would allow you to reduce your mortgages to the fair market value of your home. If you intend to keep your home and you can afford to make the mortgage payments on the first mortgage IF we can eliminate your credit card debit, refinance your motor vehicle to a better interest rate and reduce the amount owed to the present value of the vehicle then file your bankruptcy before its too late. In Chapter 13 Bankruptcy you have to pay back all of the money you are behind on your first mortgage. However you get five years to do it.
Stop wasting time asking the bank for something they just aren't too likely to give you. See any reputable bankruptcy attorney in your community immediately.
