Bankruptcy

Loan Modification Calculator

By Attorney Goldstein

As a bankruptcy attorney and a lawyer who represents clients with loan modifications, I am often faced with a client who owes more money on their home then the house is worth.  This negative equity situation is often referred to as being “upside down”.  One of the biggest questions I am asked by these homeowners is how much can I save with a loan modification. 

Pursuant to President Obama’s Home Affordable Modification program, a homeowner’s mortgage payment should not exceed 31% of the household income before taxes.   To that end, the Federal government has created a Payment Reduction Estimate Calculator that will demonstrate how much or if at all you can expect savings through a loan modification.  You can view this calculator at: http://www.makinghomeaffordable.gov/payment_reduction_estimator.html

Full post as published by Bankruptcy Articles & Blog on April 02, 2009 (boomark / email).