Can you modify a home loan that was included in bankruptcy?

Hi There...I work for a loan mod attorney and I am a loan officer so maybe I can help answer your questions.

What type of bankruptcy did you file? Did you file a Chapter 13 and is the second mortgage being paid through the trustee? That might be a reason why you can't modify it.

If not, then here's the thing. Second mortgage rates are usually high because of the risk involved. Simply put, they take a backseat to the first mortgage. Most of the time if the home is foreclosed on then they don't get paid. Which is why the rates tend to be high. Rates are based on risk. A second mortgage doesn't file for foreclosure. It wouldn't benefit them to do so.

If you're paying the first mortgage on time than you should be fine. Keep that as your number one priority. In order for the second mortgage to file for foreclosure the first has to be in agreement with the foreclosure. And if you are paying the first mortgage on time then it wouldn't benefit the first mortgage to do so.

As far as trying to get the payment lowered. The only thing you can really do is talk with Ditech and see if they are willing to adjust the payment as you are facing a hardship. They might request proof of the hardship and then do an analysis to see if you qualify.

There is already a lien on your home from Ditech as it is a second mortgage.

If Ditech is not willing to work with you I would at least send in what you can each month. It's worth a try.

To sum it up, the worst thing that will happen is your credit will take a hit if you don't pay it. The lien will remain on your home until it is paid for. You will not be able to refinance or sell the property until it is paid. But I don't for see them actually kicking you out of your home and filing foreclosure.

I hope that eases your mind. Please feel free to ask more if you need to.

Thank you for the information. I will have my husband call ditech to see if we can do anything and if not, pay what we can until I get my income back. I can only hope that Ditech is reasonable. They lied to us about the 11% initially saying all we had to do was in 6 months after we signed ...resign and they would lower th eintrest rate. When we called 6 months later they said um..no way..we don't do that.
Our bankruptcy was a chapter 7.
Thank you again.

I'm sorry you were lied to. However, believe it or not, and 11% rate on a second really isn't that bad. Alot of folks end up with 13% because of the risk.

Wow...that is my story exactly. We are going to our court hearing for chapter 7 bk on Thursday. I am current with our first (well alittle late each month, but still paying) and can't keep up with our 2nd through Ditech which is at a 14% interest rate. I filled out all the paperwork with Ditech and they wanted a form filled out from our bk attorney and now I'm just waiting to hear back. I think I found the forms online on the Ditech website. I'm three months behind on the Ditech loan. I'm going to try to start paying them about 1/2 each month once all the bk is paid for and we get back on track. I really appreciated the post above from the attorney. I've been very worried about just want you were asking and that post made me feel a little better. Good luck to you and post what happens.

Your welcome! I'm glad I could help.

btw...I'm not an attorney. I work for one.

I filed chapter-7 and i already got discharged letter from bk court.can i modify my mortgage loan now

Did you refirm on your mortgage?

I was currently approved for a loan modification for six months. I have 60k in credit card payment are 60 days overdue, and my husband has been unemployed for the past month. Can i file bk?

Can you modify your home loan after filing chapter 7 if the home was not reaffirmed?

I came to Marc Tow as a loan modification client. With all the commercials and ads about loan modifications I thought that it was the only way to save my home. After a few consultations with Marc Tow and his assistant Andrew my wife and I decided to file Chapter 13 Bankruptcy. Marc Tow was very direct with us and we were never charged for the consultations. He was present at all the hearings and did a good job. Marc Tow was able to strip my second mortgage who's balance was $86,000 and got rid of our credit card debt that amounted to $75,000. We were able to avoid foreclosure and keep our home. Per Mr. Tow's advice we are now working with our lender to reduce the interest rate on our first mortgage. Over all we were satisfied with Marc Tow and his staff and have recommended Mr. Tow to a family member.

You can modify your loan as long as the mortgage company you are with will allow it.
Some companies do not have the experience in moding in bk.
I work for a company that will mod ch13 customers loans as long as they have permission from there attorney and can get a motion to incur debt approved with the courts.
I would contact your mortgage company and see if they can do this if you request permission from the courts.
If this doesnt work if you know that your home value is not enough to cover the 2nd lien then talk to your attorney about a cram down and lien strip of your second.

I've file chapter 13 three years ago, I'm on my last year now I have miss two payment with my second mortgage and now they are sending me to court for forecloser on my home can they do that. I paid one of the payment and they took the money the receptionist not suppose to take it but she did and we have receipt on that, but they want take the other payment now what is going to happen in court or what can they do or what can I do.

As long as they dont hold the first mortgage they would have to pay off your first mortgage in order to foreclose on your second mortgage.
they first have to get relief under a motion for relief then they would have to pay off the first lien unless it it is the same company that has both lien or lons an then sometimes they will pay there first off then foreclose.
If you first lien holder or loan holder is different from the second then i would contact your first lien holder to advise if they have the intent to foreclose

i filed chapter 13 5 years ago at the time i was 3 payments behind on my mortgage now i have received a discharge what happen to those 3 payments i was behind on

my mortgage is 3 months late. we bankrupted a few months back. I tried to make a payment they wouldnt accept . can we still modify our morgage.

You know what, if you find the IPS address of this person making a positive comment, you will find that it goes back to Marc Tow 's IP address.

I am on social security and have not paid on my 2nd for 6 months and chase has sent a letter of intent to foreclose. I am current on my first. I owe 187k on first and 54k on the second. My home was valued at 165k by zillow.com, however the same house down the street just sold for $95K Can the 2nd foreclose? and doesnt the first have to be onboard. I did not reaffirm the 1st or 2nd. My ch7 discharge was in 2008. can I file a chapter 13 to wipe out the 2nd lien. In California

Your 2nd can foreclose, most likely they will not unless they are in 1st lien position. For example if you got your loans at the same time, whoever filed their lien 1st is in 1st lien position. But if you got your 2nd at a later time, they would be in 2nd lien position. Your first doesnt have to be onboard, they wouldnt care if your 2nd forecloses, as long as the 1st is 1st lien postion. I would contact your 2nd for any modification options they may have. They may or may not be able to modify with the unreaffirmed debt. I'm not sure about CA law, but would you filing a ch 13 really wipe out the 2nd? I thought with a 13 you would still have the debt, and have bankruptcy payments to go toward all of your debt and a bankruptcy trustee to delegate where the payments go.

I too used Marc Tow...we went to him for a loan modoification as well, but ended up filing a chapter 7 bk. He was very direct with my husband and I, he even met with us on a Saturday. We filed a chapter 7 adn got rid of all of our debt, and now the bank is trying to work with us to stay ion our home!

After a Chapter 7 bankruptcy, if you haven't reaffirmed the debts, you're not personally liable for paying off the dues. If you've reaffirmed the loan, then you'll have to make the payments on time to save the property. If you haven't signed the reaffirmation agreement, then you can surrender the property to the lender who can foreclose it in order to recover his dues.