Federal Homeowner Assistance Programs May be the Answer
If you are behind on your mortgage payment ( for your personal residence), go to www.makinghomeaffordable.gov and initiate a telephone consultation with a HUD mortgage counselor. Your mortgage servicer may have contacted you concerning an application to modify your loan, but if the loan is owned by Fannie Mae, Freddie Mac, HUD, the U.S. Veterans Administration, etc, then starting at this website in my experience with clients is the best source of information and offers the best chance for a resolution.
Home Affordable Modification Program (H.A.M.P.)
Ask about the H.A.M.P. Program and whether you are eligible. Every loan has a tracking number and they will be able to determine whether a U.S. government agency, or U.S. backed quasi government/corporate agency ( like Fannie Mae) owns the rights to the loan. Even if you file a Chapter 7 or Chapter 13 Bankruptcy Case, you can still proceed on your application to modify the loan. Generally, the H.A.M.P program requires the homeowner to demonstrate good faith by setting up a three (3) month series of reduced payments. Once all of the required information is reviewed, and the application approved, the homeowner can be given an entirely new loan, with a lowered interest rate, lowered payment, and placement of the arrears at the end of the loan. The term of the loan can be extended up to 40 years in some cases.
Important Website: www.makinghomeaffordable.gov
Please note that the H.A.M.P program is a creation of the United States Congress. It can expire as an available alternative if it is not periodically renewed. If you have an interest in this program, and any other new programs which may be created after the date of this post, it is best to start at the HUD website www.makinghomeaffordable.gov and become updated as to the current options.
If you do decide to proceed with any application to modify your mortgage loan, it is important to keep copies of all documents submitted with your application along with a copy of your application. Even though it will be more expensive, you should submit your application and all exhibits to the application via FedEX or UPS. You should pay for additional tracking and request delivery signature if available. Maintain a specific file for the application, read, and re-read any written correspondence you receive. Reply to any request for updated information sent to you during the application process the same day, or as soon as possible. Missing documents or documents submitted late can affect your application, or in some instances require you to re-submit the documents.
If you have questions concerning your financial situation, an issue with a creditor, an issue with delinquent taxes, foreclosure, or any questions about bankruptcy law, please call me, I'll BE there for you. -Kevin Ryan, Attorney at Law