In many of the Chapter 13 cases that I handle, we find mortgage companies adding illegal, bogus fees and charges to the loan account. Does your principle balance seem to never go down? This is free money for mortgage companies - otherwise known as predatory loan servicing.
If we find this activity we can contest the charges and/or file a lawsuit within Bankruptcy Court against the mortgage company. Settlements could result in forgiveness (write off) of the total past due amount (arrears), a lower fixed interest rate, and/or a modification of the loan that is beneficial and permanent for the client. There are many factors based on the individual loan, the activity found, etc. This is just the tip of the iceberg.
The mortgage companies must all file what’s called a Proof of Claim with the Bankruptcy Court in order to be paid through the Chapter 13 Plan. We monitor all the proof of claims for accuracy and request transaction history to view how your payments are being applied and what charges the mortgage company is applying to your loan.
In many cases, we will send a letter demanding the mortgage company consider and review your mortgage for a modification of the loan. Nearly every mortgage company has been sued and has entered into a settlement with the government that requires them to consider loans for modification. It doesn’t matter if you have requested one prior and been denied, etc – a fresh review in light of you having filed a Chapter 13 bankruptcy is beneficial.
It’s important to note if you have a mortgage which includes your mobile home and land, all this still applies to you as well. If you have only a mobile home loan, then there would still be options beneficial to you within a Chapter 13 bankruptcy that could, for example, cut thousands off of your debt. Click here to read more about Chapter 13 Bankruptcy and what we refer to as the ability to “cram down” your debt to be equal to the value of the property rather than being the amount owed (which is often SO much more than value).
Bottom line, if you’re fighting to keep your home and for whatever reason you are behind and facing possible foreclosure – I can help. Let’s sit down and put a plan together that will save your home and get things back on track!