Falling behind on your mortgage can be stressful, especially if a loan modification request is denied. Many people think a modification is the only way to save their home. In reality, bankruptcy may give you another path forward.

An Alternative to Loan Modification

For example, if you are about $10,000 behind on your mortgage, a Chapter 13 repayment plan may be a solution. Instead of adding more to your mortgage balance, Chapter 13 allows you to spread arrears over five years. In this case, the plan could be around $300 per month, plus your regular mortgage payment starting the month after filing.

The Pros and Cons of Loan Modification

Loan modifications help some homeowners, but they aren’t always the best option. A modification usually adds arrears to the back of the loan and can extend the mortgage for 30–40 years.

For some, this is the only way to make payments affordable. For others, it means carrying debt they know they will never fully pay. Some clients accept poor terms just to stay in their homes, knowing the loan may end in foreclosure later.

A Personalized Solution for Every Client

At TAIEBLAW, we understand that every case is different. What works for one homeowner may not work for another. Sometimes, even clients who were denied modifications for years have later been approved during bankruptcy. While there is never a guarantee, Chapter 13 often creates opportunities people don’t realize they have.

Find Out Your Options

If you have been denied a loan modification or are struggling with mortgage arrears, don’t wait. Contact TAIEBLAW at 856-235-4994 or visit TAIEBLAW.COM to explore your options.

Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 34 years. He is board certified in consumer bankruptcy law by the American Board of Certification, accredited by the American Bar Association.