Debt elimination continues to be a common problem in New York and elsewhere. Families with heavy credit card debt or those that are having difficulty paying their mortgages often search for help. Unemployment left one couple struggling to pay their mortgage. Although it appeared that all hope was lost, a loan modification gave the couple a second chance.

The woman in this case purchased her home in 1975 for a mere $17,500. However, the woman and her husband had accumulated debt by borrowing against the house to make repairs and updates. She also borrowed money to support herself during a period of unemployment.

In 2007, the value of the house rose to over $500,000. That prompted the woman to take out a 30 year fixed-rate loan for about $265,000. She was able to make the payments at first, but the $1,600 a month mortgage was higher than she had initially expected to pay.

The woman's husband was not listed as a borrower on the loan, but they used his income to help pay the mortgage. Due to the slow economy, his father shut down the barber shop where the man worked, forcing him out of a job. With only one income, the couple's bills became impossible to pay.

The woman initially worked with a company to seek out a loan modification, but was denied. She also filed for Chapter 7 bankruptcy protection as another means to eliminate her debt.

The woman again asked the bank for a loan modification, this time working with another company. Finally, after a lengthy and sometimes frustrating process, the woman and her husband were approved for a loan modification. The couple has since been able to stay in their home, and can successfully make their reduced mortgage payments.

Although the process was not easy for this couple, their story illustrates the struggles that many New Yorkers are dealing with. However, there are solutions for families facing foreclosure. New Yorkers who are having difficulties making their mortgage payments may consider seeking out legal advice to find out what options may be available.

Source: Worcester Telegram & Gazette, "After long ordeal, homeowner can stay in her home," Ann Carrns, Dec. 18, 2011