Before the current economic crisis surfaced and the housing bubble exploded, the term 'underwater mortgage' was a concept that you may have never heard of before. Unfortunately now, like so many people throughout the country, you might find yourself to be in this exact situation, where you owe more on your home than its current value. The last thing you want is to lose your home.
We don't want to see that happen either. At the Law Offices of Elizabeth Quick, located in Kirkland, Washington, we are here to help you save your home by exploring all types of options. Our goal is to keep you in your home and help you obtain meaningful debt relief so that you can afford it. Contact us today to learn more about our services.
What Is a Loan Modification?
A loan modification can be sought for adjusting your interest rate, payment schedule, the amount of a balloon payment, or to obtain a whole new mortgage with better terms. However, obtaining a mortgage modification is usually difficult for a variety of reasons. The lending companies and banks that you have to deal with take a long time and the amount of paperwork is substantial and can end up being repetitive.
In many instances, a home loan modification is not granted or a lender will not work with someone until they default on their payments and foreclosure or a short sale is an option, both of which are not advantageous to a bank or lender. Even people who are current on their payments, but struggling, are not given a priority because the bank feels they can meet their obligations. We can help advise you on how best to approach a loan modification and navigate the red tape.
Is Bankruptcy the Better Option?
What you might not realize is that sometimes bankruptcy is a better solution. Bankruptcy lawyer Elizabeth Quick can evaluate your financial situation and advise you if Chapter 13 bankruptcy is in your best interest to keep your home. This filing stops any foreclosure actions pending against your home and gives you time to make up past back payments, or arrears, as part of your repayment plan under this option.
We can also evaluate if you qualify for lien-stripping, where we can strip a second mortgage or third home mortgage if the value of your home is less than the value of your first mortgage.
In some situations, you may have an easier time qualifying for a loan modification after you file for bankruptcy because lending institutions see that you are taking charge of your debts.
Contact Us: A Bellevue, Washington, Bankruptcy Lawyer Who Wants to Keep You in Your Home
You've worked hard to buy a home and now we want to help you keep it. If you have questions about home loan modifications, the bankruptcy process, and other ways to prevent foreclosure and a short sale, contact us today to schedule a free consultation with a knowledgeable attorney. We offer flexible hours and payment options to accommodate your needs.
