The first thing that you need to understand is that there are no foreclosure bankruptcy loans available right now. I am sorry to be the bearer of bad news, but no lender will  touch you for about 3 years at the least.

But it is definitely not the end of the world because you can get mortgage help and you can save your home by following these steps.

OK, the assistance that is out there for you if you are late on your mortgage and are in BK is most likely going to come from your current mortgage servicer. You can also obtain free help through a local HUD certified housing counselor or possibly another attorney. I’ll explain more about this later in this post.

Many homeowners that are in foreclosure may have made the mistake of filing for bankruptcy protection before they have obtained a loan modification. This could be a mistake and can really delay the whole process for some of you who may have not needed to file at this time.

Meaning, you possibly could have filed to early. Let me explain.

It’s all about timing when you are about to lose your home and have debt issues to deal with. If you time it wrong, then you will just make the process drag out or possibly affect your ability to negotiate with your mortgage servicer. Some of you may lose their home because of poor legal representation.

I often get these emails and questions in my forum, “I filed bankruptcy last week, I am 3 months away from foreclosure and would like to pursue a loan modification, what should I do?”

Call your attorney should be the simple answer right? Well, I wish it was that easy.

Some lawyers seem to be a bit misinformed on the process of negotiating a loan workout on a mortgage. Some savvy attorneys are definitely up to speed on the foreclosure, loan modification and bankruptcy processes. It’s a delicate balance and some in the legal field have mastered the art.

If you’re in foreclosure, these are the lawyers you will want to work with.

Let me disclose that I am not licensed to practice law and this is not to be taken as legal advice.

As I mentioned above, there are no loans for people who are in foreclosure and are in bankruptcy but there is is help out there. The assistance you may possibly qualify for is called a loan modification. What this means is your lender modifies your current mortgage (lowers your interest rate and or extends the term) in order to help you afford your home.

However, you may have some issues in trying to negotiate with your lender because you are in bankruptcy and have what is called an “automatic stay” placed by the courts. This basically prevents anyone (creditors in your filing) from contacting you in order to collect a debt.

There are several more articles below that you can read and get more educated on the process.

I also have more information on this subject in my FREE homeowner community at www.LoanSafe.org/forum. This great website offers consumers nothing less than the best information available on how to process a loan modification absolutely free of charge.

I also encourage you to call your attorney and ask if he or she can help you with your mortgage. After all, their the lawyers right?

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