“I’ll do it myself” is the most common response by all homeowners behind on their mortgage payment. Lenders encourage this behavior. However, net present value (NPV) calculations and debt to income (DTI) ratio calculations must be very specific in order for you to qualify. Lenders have also been accused in the past of finding reasons to deny homeowners loan modifications.


Sometimes homeowners behind on their mortgage are encouraged to simply sell their home when they’re behind on payments. However it can often be very lucrative for you to keep your home through mortgage litigation and start making a new lower mortgage payment or simply utilize the home for an investment property. Mortgage litigation can also buy a significant amount time in the property by delaying foreclosure.


Although Bankruptcy can stop a foreclosure sale date it will NOT restructure your loan. It merely sets up a repayment structure, whereby you pay your current payment to your lender, and also a second payment to the potential trustee for the many years of back payments you owe. It may not be a permanent solution in your situation, but at times a delay tactic.


Foreclosure is scary and is usually a process homeowners are entirely unfamiliar with. The anxiety can lead a homeowner into finding all possible means to pay back the entire past due arrears directly to the lender. Before jumping to this conclusion you should consult with professionals. Professionals can often negotiate the elimination of lender servicing fees and penalties when obtaining a reinstatement quote. It’s also possible to capitalize all past due arrears and start off with a fresh payment through mortgage litigation.