In this video, Roy D. Cole, a bankruptcy attorney in Ogden Utah, discusses if loan modification is a good idea.
“It’s kind of like throwing money in the toilet and flushing it. It’s really not a good thing. The loan modifications at this point, what they are doing, the vast majority aren’t going through. You have to be behind to qualify for the program in the first place.
The vast majority of people I’m seeing in my office have been in the loan modification process, they’ve sent in the paperwork three or four times, they’ve gotten the reduced payment, they’ve been paying it for a year — they get to that point where everything is supposed to become “permanent”. Instead of becoming permanent, they tell them that they’re going to have to make up the rest of those payments, that they don’t qualify anymore, that for some stupid reason they’re just not going to meet the criteria to do a modification.
So the end result is you go through that year or year and a half process, you get the loan modification, and you’re behind. And not just a little behind, you’re significantly behind.
They’ll try and lower your payment by up to maybe 70% of what the original payment was. So if you’ve got a ,000 payment and you get it down to 0, you’re 0 behind every single month. Well once you hit the 120 days it’s the same as a foreclosure — it hits your credit and it hits your credit hard. It’s hard to recover from something like that.
So if you’re going to do the loan modification you just as well may do a Chapter 13. In reality it’s much easier for us to modify the debts you have that exist and reduce them as get rid of them and then take maybe a second that’s unsecured and strip that off of your loan mortgage and leave you with a payment on your house that you can afford than to try and modify it. And the banks have no choice but to accept it.
I hope this has been very informational for you. I hope it’s helped you out. If you need information call us today or visit our website or send me an email, we do respond very quickly. If this is an emergency please call our office. We’ll fit you in. We’ll find time for you. The consultation is free so it doesn’t cost you anything.
The reality of the situation you’re in is that we can help you. Just give us a chance and let us to that for you. Please call.”
For more bankruptcy information, please visit
Roy D Cole Attorney at Law
2564 Washington Boulevard #101, Ogden, UT 84401
Ogden Bankruptcy Lawyer