President Obama will announce new changes to the Home Affordable Refinance Program today. In this article, the Obama administration is changing the rules for people who have high interest mortgages and who are more than 125% underwater on their mortgages to refinance their properties to lower interest rates. The change in the rules is allegedly will make it easier for some borrowers to refinance their mortgages to the current low rates.

As a Chicago bankrutpcy attorney, I have met with a significant amount of clients who are severely underwater on their properties. In some cases a Chapter 13 will allow the stripping of a lien on a second mortgage if their is no equity to support the lien. In some cases, a Chapter 7 bankruptcy is a better option for the borrower who is so underwater that they may never have equity in their property again. The choice is based upon a borrowers circumstances.

Presently, I am seeing some loan modifications, but they are few and far between. Further it is rare that the mortgage company will forgive some of the principal balance on the mortgage despite the property being significantly underwater. If you are underwater on your mortgage or in foreclosure you should speak with a Chicago bankruptcy lawyer before things get worse. I want you to lose your debt and keep your dignity! Please call my office for a free consultation at 312-489-8182!

Marc Wagman

Attorney at Law