Jump To Navigation

Does Bankruptcy Sway Lenders to Modify Mortgages

Posted on June 23rd, 2014

Arizona residents who are looking to modify their mortgage may have experienced difficulty getting a loan modification even after filing for Chapter 7 bankruptcy, which recognizes that people have unsecured debts and discharges them of those debts. However, people may still file Chapter 13 after they have already filed Chapter 7.


Chapter 13 bankruptcy has provisions that allow people to work on paying their unpaid mortgage payments over the course of three to five years. If they have already filed Chapter 7, then the section of Chapter 13 that discharges them of their debts won’t apply to them since it will already be taken care of in the Chapter 7 bankruptcy.


Yet, even though Chapter 13 bankruptcy allows for people to catch up on their delinquent mortgage payments, they will still be expected to make their current mortgage payments. This may prove difficult for them since the whole purpose of them filing bankruptcy to begin with was because they were struggling with debt.


However, lenders might be inclined to modify people’s mortgages when they are working on paying back their delinquent mortgages within Chapter 13 bankruptcy. Many lenders generally do not want their clients in active bankruptcy cases, so they might be more willing to consider modifying mortgages in an attempt to help them get out of bankruptcy.


Bankruptcy lawyers might be able to advise people as to what type of bankruptcy best suits their needs. They might also be able to help them gather and prepare the paperwork necessary to file their bankruptcy, as well as help them come to negotiation terms with any lenders so that they may potentially keep their property.


Source: Fox Business, “Will Bankruptcy Help Mortgage Modification?“, Justin Harelik, June 11, 2013


Contact Us for a Free Consultation
Office Locations

Phoenix Office One
Wright Law Offices
2999 N. 44th St., Ste 600
Phoenix AZ 85018

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Phoenix Office Two
Wright Law Offices
668 N. 44th St., Ste 320
Phoenix AZ 85008

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Scottsdale Office
Wright Law Offices
7135 East Camelback Road, Ste 230
Scottsdale AZ 85251

Telephone: 480-845-0145 / 866-703-3287
Scottsdale Law Office

Tempe Office
Wright Law Offices
2238 S. McClintock Dr.
Tempe AZ 85258

Telephone: 480-845-0145 / 866-703-3287
Tempe Law Office

Avondale Office
Wright Law Offices
12725 W Indian School Rd, Suite E-101
Avondale AZ 85392

Telephone: 623-258-4480 / 866-703-3287
Avondale Law Office

Mesa Office
Wright Law Offices

4856 E. Baseline Rd.
Suite #104
Mesa, AZ 85206
Telephone: 480-845-0145 / 866-703-3287
Mesa Law Office

Glendale Office
Wright Law Offices
20325 N. 51st Ave., Suite 134
Glendale, AZ 85308
Telephone: 623-258-4480 / 866-703-3287
Glendale Law OFfice

Facebook IconTwitter IconVisit Us On Google+Visit Us On Google+