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Loan Modification Help in Montgomery County

Bankruptcy Attorney Houston: Expert Representation for Creditors

Reflecting on Over 4,000 Consumer Bankruptcy Cases

After representing over 4,000 debtors in consumer bankruptcy cases, I have transitioned my practice to assisting creditors with judgment collection and addressing family law matters. However, my extensive experience with bankruptcy has provided valuable insights into loan modifications and how they impact homeowners and creditors alike. Here’s what I’ve learned—and what you need to know—about navigating loan modification help in Montgomery County.


What You Need to Know About Loan Modifications in Montgomery County

Many companies advertise services claiming to assist homeowners in obtaining loan modifications. Unfortunately, my years of practice revealed that these promises often lead to frustration, scams, or even foreclosure. While some companies offer genuine assistance, it’s essential to understand what they can—and cannot—legally do to protect yourself.


Recognizing Red Flags: Loan Modification Scams

When seeking loan modification help, beware of companies that make unrealistic promises or require upfront fees. Here are some critical points to remember:

  1. No Upfront Fees:
    • Companies offering mortgage assistance cannot charge upfront fees under the Mortgage Assistance Relief Services (MARS) Rule. Payment is only due after a written offer from the lender is delivered and accepted.
  2. Misleading Claims Are Illegal:
    • It’s unlawful for companies to claim they are affiliated with the government, your lender, or a nonprofit organization without evidence.
    • They cannot promise specific outcomes, success rates, or timeframes for loan modifications.
  3. Misrepresentation of Obligations:
    • Companies cannot advise you to stop making mortgage payments without fully explaining the consequences.
  4. No Legal Advice:
    • Many loan modification companies are not law firms. They cannot offer legal advice or represent you in foreclosure proceedings.

Best Practices for Homeowners

If you are exploring loan modification options, your first step should always be to contact your mortgage servicer directly. Most lenders have dedicated departments to assist with loan modifications and provide resources online, including the Making Home Affordable website.

Documents You’ll Need for Loan Modification

  1. Request for Mortgage Assistance Form
  2. Hardship Letter: Explaining why you need modification assistance.
  3. Proof of Income: Pay stubs, tax returns, or other verifiable income documentation.
  4. IRS Form 4506-T: Authorizing your lender to access your tax records.

Loan Modification: Weighing the Benefits

Not all loan modifications are beneficial. Some may extend your loan term significantly or increase the total interest paid over time. For example:

  • Extended Terms: Many modifications extend loans to 40 years, adding significant interest costs.
  • Minimal Relief: Interest rate reductions of less than 1% often fail to provide meaningful payment relief.

For Homeowners Facing Foreclosure

If your home is at risk of foreclosure, time is of the essence. While a loan modification might help, it’s critical to act quickly and explore all available options, including legal representation.


Transitioning to Creditor Representation

My current practice focuses on assisting creditors with judgment collection and providing tailored solutions for family law matters. However, I draw on my extensive experience with consumer bankruptcy to help clients navigate complex financial issues effectively.

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Michael Busby is a Houston divorce lawyer who has been in practice for over 20 years and appears daily in the Family Law Courts of Harris County and Fort Bend County Texas

Busby & Associates , have two Houston Offices, one in Chinatown, Houston Texas and another in Independent Heights, Houston, Texas. Michael Busby is Board Certified in Family law by the Texas Board of Legal Specialization.