Douglas Jacobs has an interesting article about seven myths that he sees as a California bankruptcy attorney. Specifically myths about modifications — bankruptcies — and foreclosures.
I agree, from an Alabama perspective on foreclosures, that doing a modification will not stop a foreclosure unless the mortgage company tells you. But then they often lie and we end up suing them after the foreclosure.
And modifications are not something that you are entitled to — more common to be denied than accepted.
The one thing I will say about the article is it does not address suing the mortgage companies when they have violated the law. That was not the intent of the article — I’m just pointing out there is another option — sue the mortgage companies for fraud and other violations of the law when they are guilty of breaking the laws.
It really is too much to try and figure this out on your own. Sit down with a lawyer you trust, have lots of questions to ask, get materials ahead of time from the lawyer to answer some of your questions, and then make the best decision after you learn your options.