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

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I have been searching the web and trying to get my second mortgage through Ditech modified after our bankruptcy but no one will talk to us. They say they can't because of the bankruptcy.
I am not understanding why. I am still in my home and trying to pay on one less salery. It is a whopping 11% on this second mortgage. What happens if we fall behind. What can they do to our home seeing as they are a secondary and the house isnt even worth the price of the original home loan? Can they kick us out or put a lien on the home until its paid? I am lost. I just want it modified so that I can pay it but no one seems to know what I am talking about or want to discuss it iwth me.
please help.

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.

Sub: #1 posted on Fri, 05/08/2009 - 11:10

sassy_lil_brandy sassy_lil_brandy

(Posts: 479 | Credits: )

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 way..we don't do that.
Our bankruptcy was a chapter 7.
Thank you again.

Sub: #2 posted on Fri, 05/08/2009 - 15:45


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.

Sub: #3 posted on Mon, 05/11/2009 - 06:55

sassy_lil_brandy sassy_lil_brandy

(Posts: 479 | Credits: )

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.

Sub: #4 posted on Tue, 05/19/2009 - 08:50


Your welcome! I'm glad I could help.

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

Sub: #5 posted on Tue, 05/19/2009 - 09:01

sassy_lil_brandy sassy_lil_brandy

(Posts: 479 | Credits: )

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

Sub: #6 posted on Wed, 05/27/2009 - 20:23


Did you refirm on your mortgage?

Sub: #7 posted on Mon, 06/01/2009 - 06:57

sassy_lil_brandy sassy_lil_brandy

(Posts: 479 | Credits: )

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?

Sub: #8 posted on Sun, 06/07/2009 - 15:28


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

Sub: #9 posted on Wed, 06/24/2009 - 09:48


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.

Sub: #10 posted on Thu, 06/25/2009 - 08:31


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