Bankruptcy Can Be More Effective Than Mortgage Modifications

Thousands of struggling homeowners were in for a shock when they received mortgage modifications this year - and their payments went up.

During 2008 and the first three months of 2009, more than a quarter of all modified mortgages went unchanged, according to a recent USA Today article. Even worse, another 27 percent got more expensive because banks rolled late fees, taxes and other costs into the principal.

Uncle Sam's $75 billion initiative to stop foreclosures by encouraging modifications means well, but it's missing the point. Most modifications involve banks reducing interest rates. But by lowering rates, there is no guarantee that payments will decrease - especially not when fees are factored in. With cash tight and unemployment on the rise, homeowners need lower payments - period.

Fortunately, there's a way to make it possible - and it doesn't require working with a lender.

How would you like to make not just your mortgage more affordable, but other bills as well? There's a government program that can help you do it, and it doesn't involve any hidden fees. It's called bankruptcy.

Instead of altering loan terms, bankruptcy can free up money by eliminating your debts. So all that cash that would have gone towards principal and interest on your debts can now help pay for your house - or utilities or car repair or groceries. Whatever you need most. As an added bonus, bankruptcy will also legally protect you from foreclosure and other creditor actions while you eliminate debts affordably.

It might sound too good to be true, but at DebtStoppers, we can help make debt relief a reality. Want to find out more? Just fill out an online form for our free personal debt analysis. An Atlanta bankruptcy attorney will identify a plan that's right for your unique situation and answer any questions you have along the way - at no cost and no obligation.

Why jump through hoops to qualify for a mortgage modification only to risk paying more than before? Instead, get to the root of the problem - your debt - and find permanent financial freedom.

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