5 tips for getting a loan modification during bankruptcy

Loan modification article written by Columbia, SC lawyer Daniel Stone

Many of my  bankruptcy clients are actively seeking a loan modification. The following five (5)  tips are for those of you in bankruptcy that are seeking a loan modification. If you file bankruptcy with my office and need additional information on a loan modification, please read the following tips and schedule a time to come see me.

1. You can still get a loan modification even if you are in bankruptcy. Many of my clients have heard or have been told that they cannot apply for a loan modification because they are in an active Chapter 13 or Chapter 7 bankruptcy. This is not true. The HAMP guidelines specifically allow for a loan modification even if you are in bankruptcy.

2. Document all your calls and letters. One of the biggest complaints I have from my bankruptcy clients during the loan modification process is that the mortgage lender loses their information during the process. This is why it is so important to maintain and document all your calls and letters. Write down the specific date and time of who you spoke with. Any letters or packages you send should be documented.  Update your file each week and make regular calls to your mortgage lender to check on the status. In my experience, the people who have the worst chance of success with their loan modification are the ones who do not continuously call the lender and check on the status.

3. Reapply. The HAMP guidelines do not have an appeals process. However, they do allow you to reapply as many times as you like if there is a change in your status. For example, if you are denied due to not having enough income and now you have a new job, you can reapply.

4.Provide the lender with all required documents. I cannot tell you how many times my bankruptcy client’s loan modification has been denied because they failed to send all the required documentation. Put your self in their shoes. Remember that the mortgage lender has a strict threshold they have to meet in getting your loan modification approved. Help your mortgage lender during this process. The more you make life easier for them, the easier it will be to get your loan modification approved.

5. Stay calm. Many of my bankruptcy client become agitated during the loan modification process. Remember, you are not alone and most of the other loan applicants are having the same problem. Try to keep a level head and keep moving forward.


- Stone Law Firm