LOAN MODIFICATION

Helping Borrowers Pursue Payments They Can Afford

Chances are that when you agreed to borrow money, you had every intention of paying it back, and you may still believe you can do so in the long run. In the short run, however, if you cannot afford your payments, you may need to obtain a modification of your loan terms.

At the Reno Law Firm in Memphis, we give people sound, responsible advice on voluntary loan modification agreements with banks and mandatory loan modification imposed by the bankruptcy courts. Contact us to schedule a free consultation with attorney Claire Reno. We serve clients in Shelby County and throughout the region.

Representing Clients in Voluntary Loan Modification Negotiations

There has been a lot of talk about the willingness of banks to make loan modification agreements with borrowers who cannot afford their monthly payments. Because of the widespread need for loan modification, there are many nonlawyers out there who will promise to negotiate with your bank if you pay them a fee.

When it comes to voluntary loan modification, there is no standard, predictable process. Every bank is different, every case is different, and anyone who promises you a specific result cannot be trusted.

You should be particularly wary of anyone asking you for money upfront for debt negotiation. At the Reno Law Firm, we will help you understand your options and give you honest advice based on your specific circumstances. If filing for bankruptcy seems like it might give you leverage in the loan modification process, we will go over that with you and represent you if you decide to file.

Pursuing Mandatory Loan Modification in the Bankruptcy Courts

There are some cases where bankruptcy courts have the authority to directly modify loan terms. The most prominent case is car loans where the car is currently worth less than the borrower owes on it. There are private lending companies that will refinance your loan based on the current value of the car, and the bankruptcy court can require your current bank to redeem the loan at that value.

A similar modification procedure is currently available for some second mortgages and vacation homes, and there is proposed legislation that would allow the courts to do this for primary residences. Contact us to discuss the latest developments and whether filing for bankruptcy can help you achieve a mandatory loan modification.

At the Reno Law Firm, based in Memphis, Tennessee, we represent clients throughout West Tennessee, including the communities of Brownsville, Germantown, Collierville, Bartlett, Arlington, Millington, Cordova, Covington, Jackson, Munford, Atoka, Brighton and Bolivar; and other locations in Shelby County, Tipton County, Fayette County, Haywood County, and Madison County

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