Our San Francisco Bankruptcy Attorney Talks About New Loan Modification Law
If you are a person that has been struggling with getting a loan modification in San Francisco or San Jose, do not feel beaten, because as of June 1, 2010 the new HAMP laws came into effect helping many homeowners with modifying their loans. Typically, when negotiating with a loan service provider, many debtors feel bullied and helpless. This is because the loan providers hold all the cards when it comes to your modification. You are at their mercy because they can say yes or no to the modification, it seems, at their whim. As of June 1, 2010 however, many debtors will apply for a loan modification and find that they will be granted a loan modification and will be given a 90 day window to make the proposed modification payments. This is due to the new HAMP modifications that was passed earlier in the year. The law allows for a debtor who applies for a loan modification be given a chance at paying the proposed modification for 90 days, after which the lender can consider keeping the modification permanent. Another benefit of the new HAMP modification is that debtors who are currently in Chapter 7 or 13 bankruptcies will not be denied consideration for HAMP if the debtor’s bankruptcy attorney or bankruptcy trustee submits a request to the servicer. Therefore, even debtors who are in bankruptcy will not need to worry that they will not be able to participate in starting a loan modification due to the bankruptcy automatic stay.
If you want more information about our firm, please do not hesitate to contact us. Our bankruptcy attorneys can provide you with information and get you on the road to a fresh start. We have offices in San Jose and San Francisco. We look forward to meeting with you soon!