What happens if I can't afford the payments for a loan modification?

If you can’t afford the payments for a loan modification in Pennsylvania, you may file a complaint in court to ask for a foreclosure defense. This is a legal process that allows the court to review your financial situation and determine if you’re able to make the payments on the loan. The court will look at your income, assets, and debts to determine if you can afford the loan modification payments. If the court decides that you’re unable to make the payments on the loan modification, the court may order that the loan be modified in some way. There are various forms of loan modifications and the court may decide that a particular type is best suited to your situation. The court could lower the monthly payments, change the interest rate, reduce the principal balance, or even forgive a portion of the debt. If the court does not order a loan modification, you may end up in foreclosure. You can also negotiate with the lender to try and come to an agreement on your own outside of court. This may involve a repayment plan, a short sale, a deed in lieu of foreclosure, or some other form of loan modification. In any case, it’s important to seek the advice of a foreclosure defense attorney in Pennsylvania who can help you understand your options and determine the best course of action for your specific situation.

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What happens if I can't afford the payments for a loan modification?

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