Bankruptcy Blog

Foreclosure Update: Mortgages Offering Sham Loan Modifications to Waste Your Time

Lately, I have been noticing that mortgage companies are offering sham loan modifications to homeowners to be able to foreclose on houses. It’s a really shady practice, and I imagine it violates a myriad of consumer protection statutes.

Here’s what I’ve been seeing:

  1. Mortgage companies are filing foreclosure lawsuits

  2. Then promising loan modifications that take months to complete

  3. While the homeowner is naively going through the loan modification trial period, the mortgage company is charging full-steam ahead toward the foreclosure sale

  4. By the time the homeowner is DENIED the loan modification, the house is on the eve of being sold at foreclosure sale

  5. The mortgage company has successfully wasted the homeowner’s precious time in the months leading up to the foreclosure sale

  6. If there’s any time remaining, you can still stop the foreclosure sale by filing bankruptcy -- Chapter 7 or Chapter 13!

And I’m not saying all loan modifications should be avoided, but I am saying you should be careful of the situation above that I’ve been seeing more and more lately; and always have a Plan B (Bankruptcy)!

As soon as you start struggling with your mortgage payment, contact a bankruptcy attorney to learn the benefits that may be available to you.  Call/Text Attorney Lucas Ruffing @ 740-815-1114.

Thanks for reading,

Lucas Ruffing
Attorney
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com

Lucas Ruffing