How can you use bankruptcy to modify your mortgage?
The U.S. Bankruptcy Court for the Eastern District of Wisconsin recently established the mortgage modification mediation program to help borrowers in bankruptcy modify their mortgages. This process works in the following way: the court appoints a mediator who then sets up a meeting between the lender, the lender's attorney, the borrower, and the borrower's attorney for the purpose of seeing if a permanent loan modification can be reached. Typically, these modifications are effective in settling mortgage defaults and - in many cases - lowering the monthly mortgage payment.
Requirements for participating in the mortgage modification mediation program:
- You must be eligible for Chapter 13 bankruptcy
- You must be seeking to modify a mortgage on your primary residence
- The balance on that mortgage must be under $729,750
- You must continue to pay mortgage payments while the modification is pending. You can pay an amount equal to 31% of your monthly income or 75% of the amount of your current mortgage payment, whichever is less.
- You must pay a one-time filing fee, in addition to your bankruptcy fee
If you have been struggling to modify your home mortgage on your own, this may be the program for you. Instead of spending weeks getting the runaround from your mortgage company and hopelessly trying to get to speak to a mortgage representative on your own, the court will connect you directly to a representative who can modify your loan in a forum created by the U.S. Bankruptcy Court.
Trusted Mortgage Modification Attorney in Milwaukee
As your attorney, I will be your advocate throughout the entire process of mortgage modification. You won't need to worry about all the confusing forms, as my team will complete and file all of them for you and will make sure you comply with all the important deadlines. If you are looking for an experienced Milwaukee bankruptcy lawyer, Sapinski Law Office, S.C. is here for you. I have helped thousands of individuals throughout the state of Wisconsin and am prepared to do the same for you.
For more information, call today to set up a free initial consultation.