A credit reporting company recently analyzed about 5 million mortgages to determine, in part, if borrowers who received mortgage modifications kept up with their payments after the modification. TransUnion found that more than half of those who received a mortgage modification were behind on payments a year-and-a-half later. The June 21, 2012 New York Times article was optimistic still.
The numbers show that many borrowers with a mortgage modification were able to take on new credit. Additionally, those borrowers were able to pay their credit card bills and auto loans. Of borrowers who had a mortgage modification in the past, 6% were late on auto loan payments. Of borrowers who did not obtain a mortgage modification, but had also been delinquent, 11% were late on auto loan payments. The group vice president for financial services at TransUnion said, â€œI view (the findings) as positive news for lenders and borrowers.â€
If you are in debt or have fallen behind in your mortgage, and you are considering bankruptcy, then you should contact a qualified lawyer. Jayson Lutzky is a Bronx personal bankruptcy attorney who has more than 30 years of legal experience. He offers free, confidential in office consultations. To set up an appointment, call 718-514-6619 or visit www.MyNewYorkCityLawyer.com for more information.