Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Loan Modification - Not Your Saving Grace

I have many people that are contacting me now that are coming into contact with loan modification companies.  The way they are contacting me are different, but in most cases, the end result is the same - the loan modification didn't go through as planned and I am about to lose my home.

Recently, I have had a surge of new consumers panicking to get in for an appointment to see about a Chapter 13 bankruptcy because they just found out that the loan modification promised fell through and foreclosure is in two days.  I have also had a number of clients that called to close their file because they suddenly received an offer of loan modification and they don't need us any more.

One thing I learned years ago was that 9 times out of 10, these promises by mortgage companies and now loan modification outfits are full of false hope and in the end, they don't happen.  I have a running bet with the staff on how long it will take before a client is back in to re-open their file after closing because they have worked it out with the mortgage company or they have a loan modification being worked on.  Needless to say, even though we do not seriously bet money, no one will bet me anymore because they always come back in a panic.

I posted an article today called "Beware of The New Predators in Lending" and you can read more about this subject in our library section under Chapter 13.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case.  If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.