Woodland Hills Debt Attorney

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Professor of Law, Certified by the United States Veterans Administration

Mortgage Modification

Woodland Hills Mortgage Modification Lawyer

Los Angeles Lien Stripping Attorney

Many people believe that they should do everything possible to avoid filing bankruptcy. This belief often sends them to unscrupulous debt consolidators and mortgage modification companies in an effort to avoid both foreclosure and bankruptcy. As a bankruptcy attorney, I am opposed to mortgage modifications for one simple reason: mortgage modifications are not governed by any law. Rather, homeowners are subject to the whims of the bank or other mortgage lender. They do not have the protections offered by state and federal bankruptcy laws.

Call a Los Angeles-area lawyer at the Leventhal Law Group, P.C. at 818-347-5800.


Disadvantages of Mortgage Modification

At Leventhal Law Group, P.C., I focus on bankruptcy, giving me in-depth knowledge and experience based on helping hundreds of clients make a fresh financial start. When individuals ask me why they should file bankruptcy rather than seek a mortgage modification, I answer as follows:

  • A modified mortgage may take much more time to satisfy and require you to pay significantly more interest
  • It can take many months to learn if you qualify for mortgage modification
  • Mortgage modifications are usually available only for homestead property
  • Mortgage modifications do not address second mortgages on the same property
  • To qualify for mortgage modification under the Home Affordable Modification Program, your mortgage must be more than 31% of your income and you must qualify for financial hardship while proving that you can make the new payments.
  • Chapter 13 bankruptcy allows you to pay the arrears on your mortgage over time, from three to five years.
  • If you have a second mortgage and your house is worth less than you owe on the first mortgage, it is often possible for the bankruptcy court to declare that your second mortgage is unsecured debt and therefore dischargeable. This can give you more money to make payments on your first mortgage under the repayment plan. The process is called lien stripping.
  • As a bankruptcy lawyer, the fees I can charge are regulated by law; there is no limit to what a mortgage modification company can charge. Moreover, mortgage modification scams often require the homeowner to make upfront payments; this is illegal in California.
  • Banks may be more willing to negotiate a fair mortgage modification after you file bankruptcy — and you will not have to pay a third party to do it.


I discuss all options with clients seeking relief from debt. I explain the pros and cons of each and recommend options that best fit their circumstances and allow them to start again.

Contact a Woodland Hills Mortgage Modification Attorney for More Information

Call 818-347-5800 to schedule a free initial consultation. The firm offers the promise that you will always speak with an experienced bankruptcy attorney.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.