Most people think that bankruptcy court mortgage modification is just another government program that will substantially contain the same tough eligibility requirements and the many time’s ineffective government programs like HOPE, HARP, and the Making Home Affordable Programs of the last few years. The Loss Mitigation Mediation Program, commonly known as the LMM Program, is indeed a federally funded program serving debtor mortgage loan borrowers in the South Florida community. Like its other debt relief counterparts, the LMM Program attempts to serve those with mortgage delinquencies for both home and investment properties in dealing with lenders who may be actively trying to foreclose on these properties. However, the LMM Program can only be reached through the bankruptcy court and this program carries with it many tangible benefits.
Lender Participation. The Federal government attempts to make no representation of those applying for the program that it is a solution with a warranty since the debtor’s lender must voluntarily agree to participate in the program. Since its inception in April 2013, the results are in, and most of the major lenders have agreed to participate. This means that the borrower who seeks to address his financial troubles in bankruptcy court will meet with a lender who is under most circumstances willing to participate in the program. In the past, a majority of lenders picked and chose what programs they were willing to deal with at random.
Addressing the Global Financial Situation. The fact that a person needs to obtain a modification of their mortgage to pay less on a monthly basis to the lender goes a long way in helping those in financial trouble. It is an additional benefit if other financial pending situations can be addressed at the same time, including credit card debt, medical bills, personal loans and other unsecured debt. The truth is most people with mortgage payment problems are also in debt as to their other bills and addressing all issues through a bankruptcy with an experienced bankruptcy can go a long way in getting in obtaining debt relief.
Fairness in Modification Process. The bankruptcy court has been explicit in its attempt to depart from a past of lender unfairness where documents and application requests were constantly lost and duplicated, lender communication was almost nil and conflictive, and lender decisions were arbitrary and unexplained. There is now a computer program portal where all the information is sent, all communication is recorded, where all updates and requests are noted, and there are benchmarks, deadlines, and a non-partisan mediator. Non-compliance and non-cooperation can always be resolved by seeking redress through the court keeping all parties in check.
For those who attempted prior modifications unsuccessfully, alone or with the help of another, if you are going to try the LMM Program, it is important to navigate the requirements of the bankruptcy court and those of the loss mitigation mediation program with an experienced attorney. If you have failed before, this program offers the best hope for anyone who seeks to stay in their home or save their investment property. If you need to determine whether this program may help you save your home or investment properties, please make an appointment with our office for a free consultation at (305)820-0334. For more details, please check our website at www.ahernandezlaw.com.