Making a Payment Plan Work

The world of mortgages is fascinating but also fraught with peril. A mortgage loan and the home that it secures are often the most important investments a family will ever make. Financial hardships visit almost all of us at one time or another and can lead to the inability to pay your mortgage. Most mortgage lenders and servicers recognize this, as does the government, and mortgage loan modifications and other similar debt assistance devices are often available. Sometimes, there are problems even with sympathetic lenders and servicers.

What Happens To Your Mortgage If You Lose Your Job?

Consider losing a job and then not being able to pay a mortgage. You get a notice of default and demand for payment of the full amount of the mortgage. You might also get a notice of intent to foreclose. What do you do? When do you do it? Are there any alternatives to foreclosure?

Asking your lender or servicer for the options they have is always a good first step rather than avoiding facing the harsh reality of foreclosure. The Consumer Financial Protection Bureau or CFPB has now issued some regulations that put some structure into the modification process and mandate that the lender and servicer take the modification process seriously and explain why you are not entitled to one if you ask.

We Can Help!

We were recently able to compel a servicer to follow those CFPB rules in the face of a pending foreclosure sale. The lender had started a modification review but claimed that under the CFPB rules, it did not have to finish the review because it did not have enough time to do it before the sale it scheduled, and the rules did not apply because of the date they had first asked for the sale.

The Genesee County Circuit Court disagreed, issued an injunction, stopped the sale and forced the lender/servicer to complete what it started. The result was that the lender determined the homeowners qualified for a modification and the auction sale was averted. Foreclosure sales can’t always be stopped, but there is always hope and a reason to ask for relief and to seek legal advice.

Contact Us Today

For experienced assistance with mortgage payment plans in metro Detroit, call our Birmingham office at 248-658-8590, and find out how we can help you or use our contact form.

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