After Mr. Williams* broke his back, the Williams family struggled to keep their home.
Mrs. Williams was fully employed, and served as the primary provider while her husband sought social security disability. Their three teenage children had part-time jobs while attending school. But the family fell behind on their mortgage payments after Mr. Williams was no longer able to work.
A foreclosure action on their property was in progress when the Williams family turned to Legal Services Corporation of Delaware (LSCD) for help. LSCD attorneys assisted the family through a mortgage mediation process. They were initially denied a modification to their payments but LSCD lawyers worked with the Williams family to help cut their budget and locate better supporting documents.
The mortgage company continued to deny modification attempts, saying that a $300 "cushion" was needed each month, even though such a requirement was not allowable under the federal modification program.
LSCD attorneys advised the mortgage company that if they failed to comply with the federal program, the Williams family would file a Chapter 13 bankruptcy and litigate the mortgager’s failure to comply with the federal program in bankruptcy court. After continued negotiations with the bank, the Williams family was finally approved for a trial modification and their monthly payments were reduced. They successfully made the payments and have now received a permanent modification, allowing the family to stay in their home.
*Names have been changed