Despite all the hoopla about loan modifications in the past, many borrowers were led to believe they would receive a loan modification and were simply not given one. The loan modification process was frustrating and left stressed out borrowers in a worse position. Some borrowers report being told to stop making their mortgage payments as part of the loan modification process. When they did this, they simply got behind and it became impossible to catch up. When no loan modification was approved, they ended up having to file bankruptcy to stop a foreclosure sale and catch up on the past due payments.

2020 Update: Loan modifications have become easier to get. Contact your servicer. Do not contact a “loan modification” company. You can do this. Certain loans are required to consider you for a loan mod if you file bankruptcy. That doesn’t mean you’ll get one. They just have to consider you for one.

Read the attorney generals’ warning to consumers and call your mortgage company or the Texas attorney general for help. As always, many internet scam operations are out there ready to take your money, so be cautious.

If your home is scheduled for foreclosure sale or you have received a notice of sale, and the mortgage company is canceling or delaying the sale and considering you for a loan modification, be sure that you have written proof that the sale is not going forward. If you cannot obtain written confirmation that the sale is canceled, call an experienced bankruptcy attorney for help immediately.