Many banks and mortgage companies offer mortgage modification programs, which may involve changing the terms of the loan, excusing previous missed payments, and giving the homeowner a fresh chance to pay the loan. Applications may be made to the bank or mortgage servicer: these usually require a fair amount of paperwork, including documentation of income. There are a variety of programs, including HAMP (Home Affordable Modification Program), and HARP (Home Affordable Refinance Program).
A mortgage foreclosure lawyer can assist you in this process by helping you assemble the paperwork, submitting it to the bank, and advising you throughout the process.
Although the courts do not have the power to force a bank to agree to a mortgage modification, they can require that the bank negotiate in good faith. In Blair County, the Court will order the bank’s attorney to meet with the homeowners, allowing an opportunity to discuss various options to save the home. If a bankruptcy petition is filed, in the Western District of Pennsylvania, your bankruptcy attorney can request that a “loss mitigation” program be established, which provides an opportunity to negotiate a mortgage modification.