Discussion on How Banks View Loan Modification

Schumpeter Reincarnate Joined: 24 May 2008 Posts: 50042

http://mandelman.ml-implode.co.....ification/

Posted: Mon Nov 09, 2009 9:37 pm

And once again, Mr. Mandelman is dead on with his assessment.

We get many a potential bankruptcy client who comes in and goes over their situation... from our side of the table the potential client is a perfect example of why BK laws were designed... but the client has been beaten down by the creditors and the media and his or her WWII era parents into believing that the mess is all his or her fault and that he or she should suffer suffer suffer. The potential client needs to understand that the creditors and the potential client are BOTH in the mess... the last thing the creditor wants is for that person to learn what BK can do.

We've had potential clients sit there and tell us "I'm not bankrupt, so I do not want to discuss it." When asked why they say it, they tell us the stigma is too great to accept... I'd like to take credit, but it was my law partner Nathan who said it to one potential client... "Well, the truth is, you're already bankrupt. We're just going to help you declare it." Good thing the potential client had a sense of humor… he signed up with us.

An informed and educated borrower is extremely dangerous to a creditor whether that creditor be a credit card issuer or mortgage company. The real value in legal counsel for working with mortgage companies is in the knowledge of your rights… you might still get denied, you might still lose the house, but at least it was a fair fight.

- Paul