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Mortgage Modification - Why It Can't Solve Your Debt Problems

"I got the mortgage modification, but I’m still in debt trouble. What’s up with that?"

You waited for months. You spoke on the phone with everyone at the bank. You even stood in a line that stretched around the block in downtown Atlanta when NACA came to town. You worked for it, but you finally got that mortgage modification. Your interest rate was cut in half! How is it possible that you’re still having trouble paying the mortgage?

Was mortgage modification the right solution to your debt problem?

What the folks pushing mortgage modification in Atlanta don’t tell you is that not only are modifications almost impossible to get, but those few loans being modified are modifying the interest only. That means that even a big interest rate reduction won’t mean a big enough monthly savings to make a real difference. So, if your money problems have forced you to tighten a single notch on your belt, your new mortgage will ensure that you're comfy again. But if you have deeper financial issues, you're going to need to address them.

What's at the heart of your debt problem?

The fact is most homeowners are not having trouble paying the mortgage because of the interest rate on their loan. They’re losing their homes because of the monthly payments on all of their other debt — particularly credit card debt. That's where the truly high interest rates are, which make high credit card balances the most stubborn form of consumer debt. If you could eliminate those monthly credit card statements, you could pay your mortgage easily. But as long as you're saddled with having to pay that lump sum, every month will be a struggle. That’s why so many families who get mortgage modifications end up in foreclosure anyway.

But with a bankruptcy plan from Atlanta DebtStoppers, you reduce or eliminate credit card debt, IRS debt, medical bills and much more. That cuts your total monthly outlay dramatically — much more than any mortgage modification. So you’ll be able to afford your mortgage, which will allow you to save your home.

Let DebtStoppers of Atlanta help you manage your monthly payments

If you want to keep your home, you have to address the heart of your financial problems: your non-mortgage debt, the kind  a DebtStoppers bankruptcy plan can eliminate. To see if one of our plans can provide you with permanent relief, call us at 404-796-7161 or sign up online for our no-obligation, free personal debt analysis.