Bank of America’s Home Loan Help website page asks viewers to choose the statement that most closely describes their situation:
- I am current on my mortgage, or I just missed my first payment.
- I think I will have trouble making my mortgage payments soon.
- I have missed more than one mortgage payment.
- I have received a foreclosure notice.
- I want to know more about the federal government’s Making Home Affordable program.
For all of 2009, as the debate about “mortgage cramdowns” continued to rage in congress,
I’ve made special efforts to keep my Indiana bankruptcy blog readers and clients up-to-date, not only on Indiana bankruptcy help, but also on how to get help with mortgages.
Along with the Columbus bankruptcy lawyers that work in my office there and the bankruptcy lawyers in Indianapolis who are my associates, I’ve been working hard to help homeowners communicate with their lenders and negotiate modifications on their mortgages. (It’s often proven to be the case that just seeing a law firm’s letterhead makes the mortgage company pay closer attention to requests!)
In our state, we have a law saying that homeowners have the right to have a settlement conference with the lender before a foreclosure can happen. At this conference the lender is always represented by legal counsel, but the homeowner rarely has legal representation. That’s why I’ve tried to be of help wherever needed. I found that my experience as a debt consolidation lawyer in Indiana can prove very useful in mortgage negotiations.
Before even beginning a mortgage negotiation, there is homework to be done. Here are some of the things that need to be brought to the meeting:
- Paperwork showing the loan number of the mortgage
- Your last property tax bill (if the mortgage has an escrow account set up, you would still have a statement of taxes)
- Your homeowners’ insurance bill
- Paperwork showing your monthly before-tax income (for each of the signers on the mortgage)
- A description of your hardship (why the lender should give special consideration to you)
I was hoping that, by now, bankruptcy judges would be allowed to modify mortgages, just as they handle other kinds of debt. Unfortunately, that legislation has not yet been enacted. In the meanwhile, when negotiating a mortgage modification, it’s a good idea to have an experienced Indiana bankruptcy attorney by your side!
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