Loan Modification before filing bank now says they are denying

[ecrone]

I filed for mortgage modification for all 3 of my mortgages last Spring. We were on time with first but behind on second and third. They gave us a modification on the second and third in June with first payment in August. They gave us a forebearance payment on first for 4 months so that we would be 4 months "late" and then they would review for a modification. We signed modifications and began getting statements for the 2nd and 3rd and have made all payments on time since. Filed chapter 7 in early September and discharged early December.

We continued paying forebearance payments on first through January 1. They denied the mod on the first and told us in December that we defaulted on first on October 1. They told me to resubmit mod application and we did. Then end of January they said they can't modify becuase we have a discharged chapter 7. We will find a way to pay the first mortgage with help from family.

Now, they are saying that they are denying our modification applications on the second and third mortgage too via mail. This may be a mistake because the modification documents I signed and notarized do not say anything about a trial period. We have a number of statements that show the new payment plans.

Can they revoke a modification after a bankruptcy discharge? The modifications were never recorded at our county registry of deeds. Does this matter? It's in Massachusetts. Again the loan modification documents do not say anything about a trial period. I've made 7 payments on those two mortgages since they were modified.

Thanks for any help.

[ecrone]

Has anyone else had a mortgage modification revoked after a chapter 7 discharge?

[Pandora]

Hi ecrone - Couple of questions:

did you reaffirm any of the mortgages in your Chapter 7? (hoping you didnt...)

If not - and you can afford the 1st - why are you paying on the junior lien holders, they were discharged. Save that money and then offer to settle down the road in exchange for release of the junior liens.

Mortgage mod: you need to look over all of your paperwork very carefully - look for statements that you must receive a signed copy back from the lender with complete terms else the mod is void. Was this an in-house mod or HAMP? (sounds like in-house since they offered forbearance). Two completely different sets of rules for each, but in general unless the paperwork you have states Permanent Mod or something that spells out the terms for the life of the note... it's more than likely just forbearance paperwork / trial paperwork.

"We will find a way to pay the first mortgage with help from family." - if you discharged all debts in your Ch. 7 and you still cannot afford the house unless its modified or with the help from family, then you need to be brutally honest about whether or not you can actually afford to stay in the home or rent a cheaper place.