Hardship Letters And Adjustable Rates

Many clients have adjustable rates that are about to reset. Many cannot afford the new higher payment. I have found that some lenders are willing to renegotiate these loans to a fixed rate. Sometimes a hardship letter is helpful, explaining the circumstances. It is usually best to have an experienced attorney assist with this. Lender’s attorneys are usually more responsive when they are dealing with another attorney. Many of my clients got the runaround before they came to me. As a bankruptcy and litigation attorney, I offer them instant credibility with the lender’s attorneys, as well as the very real fall back option of Chapter 13 bankruptcy. Lender’s counsel and banks know that borrowers who qualify for Chapter 13 can stretch out the payment of arrears for up to 5 years – so lenders may be more willing to speak to an attorney to avoid this outcome.