Legal Question in Bankruptcy in Illinois

Can anyone tell US what our rights (legal or not) are under the Loan Modification program in Illinois?

OR, can you please chime in and give us YOUR opinion, personal/professional experience, and the RAW TRUTH about who gets a loan modification.

So many of us are paying "pre"-loan modification mortgages, producing the same records they demand constantly...over months, suffering and hanging on to the possibility of being approved ...yet, never getting officially approved.

Are they just taking our payments, to maintain an income steam, without any intentions of giving us a legitimate loan modification? As a group...do the Banks routinely do this to keep millions of people paying a mortgage, knowing full well they can't approve everyone, forestalling foreclosure?

I know you can't read or predict the Banks response. But if you were in our shoes, what would you do? We welcome any advice or comments.

Thank you for helping us.


Asked on 9/17/10, 12:24 am

1 Answer from Attorneys
Caroline Palmer Law firm of Caroline Palmer

Most of the people I have seen get a loan modification are those who have a steady income and are able to continue paying on the mortgage, just not at what the bank wants. I have also seen a lot of people who have gone to a credit counselor or gotten modification assistance succeed.

These days it's in the bank's best interest to keep the house out of foreclosure because they have too much unsellable inventory on their hands right now.

My sincere advice is to get help from a credit counselor who specializes in mortgage loan modifications. You don't have to go to a commercial firm, there are a lot of reputable charitable organizations in the Chicago Area.

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Answered on 11/08/10, 8:13 am


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