If only your mortgage note was the sum total of your problems

I often meet clients who’ve been through the ringer with their mortgage company trying to get their loan modified. By the time these clients get to me, they have had to exhibit the patience of Job with regard to waiting on hold, filling out applications, providing documentation, etc.

Some have actually obtained a finalzied loan modification agreement. Some are in the trial period. Some are not sure where they are.

But all have the following frustrating fact in common: When the dust settles, and the loan modification is finalized, the dollar amount by which their loan is reduced is not enough to get my clients out of the mess they’re in.

Yes, their modified mortgage payment including principal, interest, taxes, insurance, and HOA fees may be reduced to 31% of their gross income as a result of the HAMP modification, but their overall debt burden is still too heavy to bear.

By overall debt burden, I mean car notes, credit card minimums, student loan minimums, tax arrearages–everything. If the modified mortgage is 31% of your gross, but you’re still spending all of your other income trying to keep Big Credit’s 29% interest at bay, you’ll remain unable to pay down debt and pay ordinary household bills.

Here’s an article from the Wall Street Journal published May 7, 2010 that describes the some of the fine points of this predicament.

I strongly urge you to visit the Making Home Affordable eligibility website to see if your mortgage(s) qualify for relief, and if so to what extent.

Yes, there are some non-profit housing counselors that may be able to help you negotiate some of your debts, but there is no one better equipped than a bankruptcy attorney like me to level the playing field between you and your creditors.

Filing bankruptcy does not mean that you’ll lose your loan modification, or your house. But it may mean that you lose the rest of the debt that will prevent you from surviving the rest of your debt.

Call my office at (404) 421 3706 to schedule your consultation.