Stu Martin: Seeking A Loan Modification
Stu fell behind on his mortgage payments after being laid off from his job of 10 years at the Chrysler Assembly Plant in Belvidere, Illinois. Stu has recently found a new job, and is making slightly less money than he was at his previous job. Stu’s house is not significantly underwater, and he wants to keep his home. By defending his foreclosure case in court, which is his constitutional right, Stu will buy himself more time to obtain a loan modification.
Since his income is only slightly less than it was before, he may have a good chance of getting a modification. If his lender refuses to offer a loan modification for any reason, Stu still has several possible safety valves: a Chapter 7 bankruptcy, a deed in lieu of foreclosure, or a consent foreclosure. While none of those options will save his home, they will both eliminate his potential liability for a deficiency in the future. Stu may also qualify for a Chapter 13 bankruptcy, which could save his home if he can afford to make monthly plan payments.
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