Stop foreclosure Today! Bankruptcy Court Mortgage Modification Program
Can I Get A Mortgage Modification While In Bankruptcy?
The answer is yes! In fact, the bankruptcy court has a court-established program called the Mortgage Modification Mediation (“MMM”) program. The program is implemented within your Chapter 13 bankruptcy and is designed to provide an opportunity for individuals to explore mortgage modification options with their lenders. The program is open for any real property that the debtors have an obligation on the promissory note or mortgage. The goal of MMM program is to provide a structured environment that facilitates communication and the exchange of documents and information in a court-supervised confidential setting. It encourages everyone to reach an agreement with an end goal of arriving at a loan modification that is feasible and beneficial to all parties. Both parties get to pick a mediator for their modification and with the assistance and supervision of the court, it has proven to be a very successful way to get a mortgage modification.
A modification is not guaranteed if you participate in the MMM program. The mortgage lender still has final say over whether they offer a modification. However, from experience, I can say that your odds are better in this program because of its structure and the court oversight. Mortgage lenders proved to deal fairly and with a genuine desire to modify the mortgage. In the few instances where I felt that the mortgage lender had made a mistake, there is always the opportunity to take the matter to the Judge if cause to do so existed. Being denied because you do not make enough money to modify the loan is not “cause” to take it to the Judge but if a lender was dragging its feet, constantly losing documents, etc – having the court supervise the process is a good thing. If you do not get a modification, then you must surrender the home during the bankruptcy process.
Surrendering your home during the process doesn’t mean that you have to move out immediately. It means that the mortgage lender gets to exercise their option to foreclose on the mortgage if you cannot cure the delinquent payments through the bankruptcy. For more information on curing delinquent mortgage payments through a Chapter 13 bankruptcy, click here.Does it Cost Extra to Modify my Mortgage in the MMM Program?
Participation in the MMM Program is optional and is not covered by the base Chapter 13 attorney fees. The attorney fees for the program can be added to your chapter 13 payment plan which makes participation in the program affordable for anyone who wishes to modify their mortgage through the bankruptcy court. Every borrower in modification in the program must attend a mediation with the bank. Per program rules, the mediator is paid $600 in total and the cost of the mediator is split between the mortgage lender and the borrower.
There is also a fee to use the Mortgage Modification Portal (“MMM Portal”). One of the biggest problems in mortgage modifications has always been the exchange of information between the lender and the borrower. Everyone who attempted a modification years ago has at least one (and usually a lot more) instance where the lender claimed that they did not receive information that was sent. To eliminate that problem and expedite the exchange of information, the Court requires all parties to use a secure online MMM portal and an on-line program that helps prepare the loan modification package. The use of these two portals eliminates the need for multiple submissions of documents and unnecessary delay based upon incomplete documentation and lenders losing paperwork. Over the years, this process has been very successful in getting a fair and equitable review accomplished in a reasonable time period. In fact, there are court deadlines for the submission of everything so the modification requests move along nicely.
If you have had no success in getting a mortgage modification on your own and are wondering whether the MMM program can work for you, take advantage of our free consultation today.
Save Your Home From Foreclosure in Broward County. Ft. Lauderdale Foreclosure Lawyer
The Orfelia Mayor Bankruptcy Law Firm will evaluate your foreclosure case at no-charge. Contact us today for a free consultation. We serve clients throughout Broward and Palm Beach County for the following cities: Broward County including Pompano Beach, Coconut Creek, Cooper City, Coral Springs, Dania Beach, Davie, Sunrise, Deerfield Beach, Fort Lauderdale, Hallandale Beach, Lauderdale Lakes, Lauderhill, Lighthouse Point, Margate, Miramar, North Lauderdale, Oakland Park, Hollywood, Parkland, Pembroke Pines, Plantation, Tamarac, West Park, Weston. In Palm Beach, we serve clients in Boca Raton, Lake Worth, West Palm Beach, Lantana, Boynton Beach, and all cities in Palm Beach County.
Contact us today for a free Ft. Lauderdale bankruptcy law consultation. You will find out that you are not at the mercy of your creditors! You have options - find out what they are today!