Atlanta, Georgia Foreclosures may be Stopped With Home Loan Modifications

Foreclosures in Atlanta, Georgia are increasing rapidly now that mortgage companies have finished reviewing their foreclosure processes and now that the holiday foreclosure freezes are gone. If you are facing foreclosure in Atlanta, Georgia or in the Atlanta metro area, you may want to consider a home loan modification as a solution for paying back mortgage arrears.

There are a few federal home loan modification programs that mortgage companies may offer to borrowers, including the Home Affordable Modification Program or HAMP. HAMP has a few requirements for eligibility, including that the borrower’s mortgage balance is less than $729,750; that the monthly mortgage payment is more than 31% of the borrower’s monthly gross income; and, that the borrower show a financial hardship. It is not necessary that the borrower is behind on his monthly payments in order to apply for a home loan modification under HAMP.

Homeowners in Atlanta, Georgia who would like to modify their mortgages, whether under HAMP or directly throughout their mortgage companies, should be prepared to provide documents such as pay stubs, tax returns, profit and loss statements, and bank statements to their mortgage companies.

Debtors who file Chapter 7 or Chapter 13 bankruptcy in Atlanta, Georgia often ask whether they can modify their mortgages after filing bankruptcy. The answer is yes. Even after filing bankruptcy, debtors may proceed with the home loan modification process and are required to provide the mortgage company with the same or similar documents. If a debtor obtains a home loan modification while in a Chapter 13 bankruptcy case, the debtor must obtain approval of the modification from the bankruptcy court. Home loan modifications, when used in combination with a Chapter 13 bankruptcy, may enable debtors to reduce monthly mortgage payments, reduce interest rates, pay back arrears, and even get rid of second mortgages.

Bankruptcy and home loan modifications are both complicated processes and require time and effort to accomplish successfully. If you are looking for a home loan modification attorney in Atlanta, Georgia, contact the Law Offices of Charles Clapp at 404.585.0040 to schedule a free consultation.