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Mortgage Modifications in California

Even when you play by all the rules, debt has a nasty habit of sneaking up on you. From unforeseen medical expenses to a sudden layoff, financial troubles always seem to pop up when you can least afford them. To add insult to injury, if you fall behind on your payments, creditors can take back your property, your vehicle, or even your home.

If you’re afraid your family will lose your home to foreclosure, you might think that a mortgage modification can save it. The truth is that, even if you somehow convince the bank to reduce your monthly mortgage payment, it won’t address the real source of your financial difficulties: the total amount you’re paying monthly for all your debts — not just the mortgage.

Luckily, bankruptcy provides comprehensive solutions for all your money troubles. Instead of just lowering one payment of many, filing for bankruptcy lets you wipe out most of your non-mortgage debt. Call or text DebtStoppers today at 323-916-8660 to request a no-cost, no-obligation debt solutions consultation with one of our skilled California lawyers.

Mortgage Modification Laws

If you can get your lender to agree, California laws allow banks to alter mortgage terms to make payments more affordable. This type of agreement is called a mortgage modification.

Sadly, California lenders are usually unwilling to allow these changes, and even if you manage to get a lower payment, it’s typically not sufficient to fix your financial problems. To deal with all of your money troubles, you need to seek more comprehensive debt solutions.

For example, modifications don’t offer solutions that handle:

  • Delinquent credit cards
  • Late auto loan payments
  • Unpaid medical bills
  • Outstanding IRS tax debts

Mortgage Solutions in California

Serious financial troubles demand serious solutions. If your family is fighting just to barely scrape by, you need a complete debt elimination plan for all of your debts instead of just your mortgage. Chapter 13 bankruptcy can provide the serious solutions your family has been looking for.

While you still have to make your mortgage payment, Chapter 13 will decrease your total debt to about 10% of the amount you currently owe. You can also get a lower payment on your auto loan that reflects the vehicle’s actual value rather than the inflated amount you owe on your high-interest note.

If a bank has warned you that they will foreclose on your home, bankruptcy offers solutions that will protect it. As soon as you file a petition, the court will grant an automatic stay ordering the lender to IMMEDIATELY STOP FORECLOSURE PROCEEDINGS. This means they can’t initiate a new foreclosure, and if they’ve already started the process, they have to stop.

Let Our Experienced California Attorneys Help!

DebtStoppers has helped thousands of families find solutions for the debt problems they thought were unsolvable. No matter how hopeless your situation might feel, we can create a customized bankruptcy plan that allows your family to overcome its financial obstacles. Call or text us today at 323-916-8660 to schedule a free case evaluation with one of our knowledgeable California bankruptcy attorneys.

Let us explain how bankruptcy can offer solutions to all your financial woes and help you choose the best option for your family’s circumstances. Call or text DebtStoppers in Los Angeles, California, today at 323-916-8660 to sign up for a free consultation!