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Choosing between mortgage modification and bankruptcy

On Behalf of | Jun 25, 2015 | Firm News, Loan Modification vs. Bankruptcy

When you are in the midst of a long-lasting financial crisis, it can be difficult to know where to turn or what steps to take to regain control. Luckily for homeowners in Florida, there are options, and anyone in crisis should explore the different options in order to be sure he or she is choosing the right means of fixing the problem. For some, it may be difficult to choose between seeking a mortgage modification or filing for bankruptcy.

A mortgage modification certainly has its perks for many and has helped countless homeowners keep their homes.  But, the process of obtaining a mortgage modification can be overwhelming in that the homeowner really is at the mercy of the banks. The bank ultimately decides whether or not they want to even discuss modification options, and the homeowner has no means of recourse if the bank decides a modification is not a viable option.

Bankruptcy can be a means of regaining control, and it is an option that comes with a number of rights and protections. First of all, bankruptcy can mean consumer credit card debt is eliminated. This alone can free up funds and allow a homeowner to catch up on a back due mortgage and fees. Also, with bankruptcy as a solution, many of the fees and back due amounts can possibly be forgiven.

No one solution to financial problems will be the perfect solution for everyone in Florida. Each situation is inherently different, requiring a close look at the pros and cons of each option. If you decide mortgage modification is not the right path or one that is too risky in the future, bankruptcy options may be the answer and may be the ticket to regaining control. Our website has more details about the difference between mortgage modification and bankruptcy in general.

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