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Can we modify our loan after Ch. 7

Date: Sun, 10/03/2010 - 11:56
Submitted by rmsealey on Sun, 10/03/2010 - 11:56
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My husband and I lost over 50% of our income about 3 years ago. We have been trying to modify our home loan for over 18mths. After numerous attempts to communicate with our mortgage company and 4 trial programs, we finally decided that our only option was to file Chapter 7 bankruptcy, as our other, unsecured debt had also piled up beyond our ability to pay. Our BK attorney told us that our only option was to include our home in the Bankruptcy as we are behind on our mortgage payments. The last time I met with our attorney, while I was there, our mortgage company called his office to see if we would consider a modification. A. REALLY? B. Can we still try to negotiate with our bank? We have our 341 hearing in two days. The lawyer told us we could do what we want, after court, that he could not help us.

HELP????

Thank you
RMSealey


Yes, you can attempt to modify your home mortgage after bk. Contrary to one of the above posts, I have seen it done numerous times.

The problem you will face is the stupidity of the lender when it tells you that you need "bk court approval" or that you need to reaffirm the loan. Garbage. There is no requirement to reaffirm and doing so is a bad idea. Further once your Chapter 7 Trustee does his final accounting and closes the file the home will be "abandoned" from the bk estate and bk court approval is not required since the bk ct could care less about the home.

Stick to your guns. Keep pestering the lender. Call 2 to 3 times per week and document each contact. While few modifications go through, the fact that you did a bk should not be a reason for loan modification denial.

In the end if you are not successful in a loan modification and you can no longer afford to service the loan by making voluntary payments, take solace in knowing that since you did not reaffirm the mortgage you can just walk away and not have to worry about being sued.

Des.


Submitted by despritfreya on Tue, 10/12/2010 - 18:41

despritfreya

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