Possible to Modify a Mortgage Discharged in CH 7 ?

[Snax]

Let the figures for a new loan be your guide. Is it worth paying roughly $700 more every month on a dwelling you don't really want to keep? (Based on current rate of 4% on a 30 year note.)

[msm859]

Your problem is you owe about 50% more than your house is worth. It will probably take more than 10 years just for you to get back to even. Business wise you might be better off to stop paying, live there as long as possible, save up and in 2 years buy a new house and pay what it is actually worth -- you will @ $100k ahead.

[sadandconfus]

from what i read from forums here. the 2 year or three will be after foreclosure not my bk7 discharge. correct?

[tobee43]

from what i read from forums here. the 2 year or three will be after foreclosure not my bk7 discharge. correct?

that's difficult to call, one would have to check your county to see how fast they are going. some areas go faster than others. i would stay as long as possible and save some money for your move, if that's what you decide to do.

[CCsAreEvil]

...I tried to modify the second loan but they said it was charged off after the bankruptcy. I can stay here and pay off the house and I would be okay, but I'm afraid the second loan may come back to haunt me... Let them foreclose and find a rental or live with my parents? What I really want to do is try to get a new mortgage and just move.

I'm somewhat in the same boat as you. I was able to modify my 1st about a year ago (being post-discharge, so yes, it is possible but only if the bank's willing to work with you). Payment went down about $200/month. However, I'm pretty sure the 2nd charged my loan off. I have not even tried to contact them. I stopped paying the 2nd a couple of years ago.

I've checked around and rents are not as low as I thought they would be. It appears to still be a home owners' market (people who are putting up places for rent). It's actually easier for me to stay put and keep paying on the modified 1st. Also, my mortgage statements "still" come in as being IIB even though the 1st is "modified".. because that's what it is, a modified loan that was discharged in BK, not a "new" loan.

And I, too, am afraid that the 2nd (HELOC) will come back to haunt me in the future. Would they do that even if they charged it off? Hmm.. I'm thinking next year, I may try to do the whole "offer" thing for the 2nd to remove their lien on the property by paying 5-10% of what's owed on that HELOC.

The other option is to eventually just let the property go into foreclosure (walk away).

Side note, the property was well into the foreclosure process before our mod had gone through. The mod saved it from being foreclosed on (a couple of days before the auction sale date).

[cocoasmom]

Our bank wanted us to reaffirm before they would discuss modification. (We'd been trying to talk with them for a year, and wouldn't talk to us until they were IIB.) We did not reaffirm, thank goodness. The house is on the market for $135k less than we owed.

[MBeach222]

For sure you don't want to re-affirm....my question was asking the bank to modify after the loan has been wiped away in discharge. You have no leverage beforehand, but when it has been discharged the bank really has no other options than what you are willing to do, other than foreclose and sell.

I was curious if anyone has modified after discharge....?

thanks

[cocoasmom]

Our loan was wiped away by the discharge. We tried modification after the BK. They would not talk about modification unless it was reaffirmed first.

[tobee43]

Our loan was wiped away by the discharge. We tried modification after the BK. They would not talk about modification unless it was reaffirmed first.

so are you saying they said no because you did'n't reaffirm, or would they now work with you and let you reaffirm AFTER the discharge???

[momussetter]

We were discharged chapter 7 in May 2009 house was included. We were approved for the HAMP and did a loan modification in Sept. 2010. We had a 2nd that we settled (-.5% of $200k) with release of lien. We did not reaffirm and don't understand why GMAC gave us a loan mod but we are grateful. The only downside is that our payments are not reported to the credit bureaus. Having learned our lessons we don't do credit anyways.

[cocoasmom]

After the discharge, they said they'd work with us on a modification if we reaffirmed. They wouldn't give us any specifics first - we wanted to know how the loan modification would work, what the numbers would be etc. - before we signed the reaffirm agreement. We were at a stalemate and the house went into foreclosure.

[momussetter]

I talked to GMAC yesterday and asked about reaffirming, (because i wanted our payments to be reported), they said there's no way to reaffirm after discharge. It needs to be done during active bankruptcy.

[cocoasmom]

That's interesting. So the person I was talking to either was bluffing or didn't know what I was talking about. No wonder they wouldn't give me specifics. Just another reason I will never work with a big bank again.