I’m Not Sure Where to Turn for Home Loan Modification Help? – Jim

“Dear Steve,

I have applied for a home loan modification and been denied. They told me to apply as many times as I like and they will review. I have lost 1/2 of my income due to the economy and company mergers of various accounts I did business with. I have used money from my credit cards to make mortgage payments and now am $30,000
in debt with them. Do I get help in reducing the credit card debt to make my financial worksheet look better for the home loan modification? I don’t know where to turn as you hear of all the scams out there for both loan modification and reducing credit card debt. I am now one month behind in my mortgage payment. Should I find the money to keep this current? It is getting tough to sleep at night.

Thanks for your advice in advance!


Dear Jim,

Hopefully by the time you finish reading this you’ll be able to have a great sleep tonight since a solution is at hand.

Let me be honest about the loan modification process, the only person with power over the process is your mortgage company. No matter how much you went out and paid some firm to help you, that loan modification company has no power or secret control over the lender. If you want to learn more about what might be available contact a free housing counselor.

I posted a story recently where the people went with a loan modification company that promised them help. But the lender did not do loan modifications, period. It is unfortunately not uncommon. Read “Joseph Gembala, Esq. Sued for Loan Modification and Foreclosure Rescue Services” and “Loan Modification Boiler Room and Success Rate Exposed.”

Mortgage loan modification is not a secret, it’s a process. No lender is required to participate and to make matters even more honest, less than 7% of loan modification applicants have received any meaningful help from their lenders. Most people actually have the amount they owe, go up.

See also  Debt Settlement Not Singled Out for Advance Fee Regulation. MARS Hit as Well.

The most logical approach to take now is not to seek tricks or secrets but a real, honest and legal solution. Like it or not the only solution that meets those demands is bankruptcy. A Chapter 13 bankruptcy offers you a lot of advantages. It would allow you to keep your home, reduce the amount of any second mortgage you might have to the value of the home, create a repayment plan for the credit cards that is based on what you can afford, protect you from collectors and creditors and have the power of law behind it.

Before you feel an impulse to find any magical solution to avoid bankruptcy, I beg you, click here to find a local bankruptcy attorney and go talk to them. You don’t need to walk in the office with your head hung low, not at all. Go in for the free consultation and ask questions, educate yourself. And once you do I think you’ll agree with me that this is a logical solution based on what you’ve shared.

Please let me know what you decide to do. I’d love for you to keep me posted on how it goes.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

Follow Me
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Steve Rhode
Follow Me
Latest posts by Steve Rhode (see all)
See also  A Guide to Getting a Mortgage After You’ve Had a Loan Modification

Leave a Comment