Serious financial struggles can have a disastrous effect on a person’s assets, property, and ability to support his or her family members. Divorce, job-loss, the death of a spouse and other life-altering events may result in a drastic loss of income needed to repay debts and satisfy creditors. Such events can make it difficult for the person affected to maintain regular payments on important debts like credit cards, auto loans, and home mortgages.
People who find themselves unable to repay their creditors may face severe consequences for their inability to meet the demands of their loans. Creditors may take action against the borrower, including repossession of cars and other items with liens against them, debts turned over for collection, and banks may take action against delinquent mortgage borrowers by taking steps toward foreclosure on the home.
Even if you are struggling financially, it is important to take immediate action if you are in danger of losing your home. The loss of a home through foreclosure can be a devastating event for individuals and their family members and the consequences can echo for years following the loss. Displaced families may suffer from serious mental and emotional trauma as a result of losing their home and may not be able to recover from the financial destruction.
There are important steps that people may take to avoid the loss of their home, even if they are struggling financially. In some cases, people may turn to bankruptcy to keep their home and repay their creditors through a structured bankruptcy settlement. In other instances, people may petition for modification of their existing mortgage.
By modifying your mortgage terms, individuals may be able to reach a settlement with their bank or mortgage lender that is satisfactory to both parties. When applying for a mortgage modification loan, you may be asked to write a hardship letter describing your financial struggles and the specifics of your personal circumstances. It is important to be emotional, descriptive, and make sure to put your situation in a sympathetic light. It is also recommended that you be sincere in your desire to keep your home and repay the loan you have borrowed, so that the lender will be able to judge if you are a worthy candidate for mortgage modification
Persons seeking assistance with their mortgage modification claim may wish to consult an experienced mortgage modification lawyer to learn about your legal options. For more information on mortgage modification and legal assistance, visit the website of the Maryland mortgage modification lawyers of Chaifetz & Coyle, P.C.