If I’m facing foreclosure in Alabama, does my mortgage company have to give me a loan modification?

“If I’m facing foreclosure in Alabama, does my mortgage company have to give me a loan modification?”

If I'm facing foreclosure in Alabama, does my mortgage company have to give me a loan modification?This question comes up from time to time, and we would like to take a moment to talk about it today — are you entitled 100% to a loan modification?

The answer is no.

There’s no absolute guarantee, or right, to get a loan modification.

As an example, we had a potential client who owed over a million dollars but insisted that she was entitled to a loan modification paying $500 a month.

Nope — there is no guarantee or right to get a loan modification in the amount someone wants.

Let’s look at what your mortgage company must do with loan modifications.

They’re required to treat you fairly and follow the rules.

This means the mortgage company must evaluate your loan modification and your request for loss mitigation.

And that he mortgage company isn’t allowed to make up rules, either.

So if you qualify for X program, they can’t say, “Well, we’ve decided that people with (your first name) can’t get that program,” — that would be unfair.

“What does this mean for me?”

If you’re facing foreclosure, it’s incredibly dangerous to say, “I’m not going to worry about it. I can just snap my fingers and get a loan modification.”

Do not count on a loan modification. There is absolutely no guarantee that you’ll be able to get it.

That doesn’t mean you shouldn’t apply for a loan modification, though.

Certainly, you should apply for any type of loss mitigation, but make sure that you don’t blind yourself to the possibility of it falling through.

If your foreclosure sale is in a few days, then you should be focused on how to stop the foreclosure.

Protect yourself.

Do everything you can try and remedy your situation, and make sure you can stop the foreclosure.

If you have any questions, feel free to get in touch with us.

We would be glad to answer any questions you may have, and help you figure out the best course of action.

You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you soon. 

We look forward to chatting with you.

Thanks for reading, and have a great day!

-John G. Watts

PS — when you are looking at stopping a foreclosure, make sure to look at the default letter.  Often it is wrong, and this can be helpful in stopping the sale.

Also, keep in mind there are a variety of laws that can help including the FDCPA (Fair Debt Collection Practices Act), RESPA (Real Estate Settlement Procedures Act) and the FCRA (Fair Credit Reporting Act).


  1. joaquin quiroz says:

    ya my morgage co sold my debt to a collection co do i still have to pay the debt ?? please help im in california

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