Don’t Be Fooled By The Loan Modification Process – A San Diego Chapter 13 WILL Help

As a San Diego foreclosure lawyer one of the most common mistakes I see homeowners make is trying to do a loan modification BEFORE filing a Chapter 13. This is a mistake.  First, let’s talk a little bit about your particular scenario.  You own a home and have fallen behind on your mortgage payments.  You probably have some unsecured debt like credit cards.  You probably also have tried to get a loan modification in order to lower your monthly payments.  The problem is your lender keeps dragging the process out or keeps promising that the modification is “just about to go through” but it doesn’t.  Do you know what can help each and every one of these situations?  Chapter 13 bankruptcy.

Even if you have already filed a Chapter 7, you can convert that into a Chapter 13 and save your home while eliminating debt.  A San Diego Chapter 13 allows you to catch up on delinquent mortgage payments over a three- to five-year repayment period.  During this time you will make payments directly to the bankruptcy trustee assigned to your case.  Your mortgage lender will be prevented from selling your home as long as you are current on your Chapter 13 plan payments

The biggest obstacle I see is the client being able to afford the mortgage payments going forward as well as making the Chapter 13 plan payment.  If you are in this situation a loan modification can help reduce those future loan payments.  But you have to do it AFTER you file Chapter 13.   Here’s why:  lenders are more likely to approve a loan modification when the client is consistently making monthly payments on the Chapter 13 bankruptcy plan.  This is a good risk for them.  They want you to make the payments.  They do not want your house.  If your other debts have become affordable and they can keep getting mortgage payments from you (albeit a little bit smaller) they are going to do it.  Trust me, I see it ALL the time.  Let’s see if we can’t make it work for you!

At Thompson|Wedeking our award winning lawyers have been helping individuals, just like you, since 1976.  If there is a way to save your home from foreclosure we will find it.  Call one our San Diego Chapter 13 lawyers at 888.590.1773, download a copy of our California Guide to Bankruptcy or email Harold D. Thompson at

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