Bankruptcy has long-term consequences you need to know and understand before you file.  However, sometimes Bankruptcy is the only way to have a meaningful conversation with your mortgage servicer.

In Foreclosure Mediation, typically the bank’s representative appears by phone and does not have the authority to negotiate anything other than a HAMP modification (which the borrower is entitled to anyway without the added mediation fee).  It is difficult to negotiate if there is only one outcome possible.

Bankruptcy is a way to make the bank put their money where their mediation is. 

A Bankruptcy Mediation is different because it requires the representative to appear in person and to have authority to make a deal.  Bankruptcy Court has more teeth with monetary consequences for the bank if they do not comply with the rules.

Even if you are having trouble communicating with your mortgage servicer, Bankruptcy is not for everybody.  Seek competent legal counsel to discuss all your personal and financial goals, and what legal choices are available to you.