Mortgage Modifications in Michigan
Even when you do everything right, financial trouble can still creep up on you. From an unexpected medical bill to a sudden job loss or divorce, losing control over your finances can be unnerving. To add insult to injury, if you fall behind on your payments, your creditors might start threatening to take back your possessions, your car, or even your home.
To families on the brink of foreclosure, a mortgage modification may seem like the best option. Even if you can secure a payment reduction, modifications don't provide any solutions for all your other debts. While your house payment might be lower, the rest of your payments are as unaffordable as ever. Attempting to fix your financial difficulties through a mortgage modification is like trying to heal an open wound with a bandaid.
Filing for bankruptcy provides real solutions to your money problems. It doesn't just reduce a single payment; it eliminates all your debts. Call or text DebtStoppers today at 313-880-3970 to schedule a free bankruptcy consultation with one of our experienced Michigan attorneys.
The Michigan Laws Regarding Mortgage Modifications
A mortgage modification is an agreement you can reach with a lender to update your current loan terms. While a Michigan bank legally CAN change your terms, they are seldom willing to do so. Even if you somehow talk them into lowering your payments, a lower housing payment alone is usually not enough to get your finances back on track. You'll need to look for more comprehensive solutions.
The Pros and Cons of Mortgage Modifications in Michigan
In theory, a modification can allow you to rework your loan to get a more affordable monthly payment. In the real world, Michigan lenders hardly ever agree to help. Even if you get a modification, a few hundred bucks in savings a month can't fix severe financial difficulties.
A mortgage modification provides zero solutions for:
- Credit cards
- Car loans
- Medical bills
- Personal loans
- Back taxes
- The rest of your debt
Even if your loan payments are too expensive, reducing a single monthly debt doesn't provide solutions to any of your other debt problems. In fact, many people who secure modifications quickly fall behind again.
What Are Your Alternatives?
A mortgage modification alone won’t fix your money troubles. Real debt problems require real debt solutions. You need a complete debt relief plan that helps with all of your debts, not just a single obligation. Chapter 13 bankruptcy laws offer real solutions to Michigan families suffering financial hardship.
Even though you will still have to make your mortgage payments, Chapter 13 often wipes out about 90% of your other debts and allows for lien release. It enables you to reduce your car payment to match the vehicle's actual value instead of the high-interest payment you're currently making.
Where modifications fail, filing for Chapter 13 bankruptcy provides concrete and comprehensive solutions that keep your family in your home.
Ask a Local Experienced Lawyer for Help
DebtStoppers has created custom bankruptcy plans for thousands of struggling families. Call or text us today at 313-880-3970 to request a free debt relief evaluation with one of our skilled Michigan bankruptcy lawyers.
Our Michigan attorneys can explain the solutions bankruptcy provides and help you determine if it's the best option for your family. Call or text us today at 313-880-3970 to get started!