approved for loan mod on first,but need to file 13

[gianna]

hi, i live in CA and have a question. i got approved for a loan modification on our first mortgage and GMAC will be sending the paperwork in a few days. however i need to file chapter 13 because of cc debts, student and car loans, and also for the purpose of stripping the 2nd. my attorney told me that i can file even though i have not signed the loan docs for the modification, and my loan mod would still go thru. i kind of worried though that GMAC might not finalized my loan mod and hold it off once i file 13.

anybody in the same situation? should i wait until the loan mod is finalized, or can i file now?

thank you for your responses!

[SMinGA]

Personally I would wait - if at all possible. Without the loan mod docs - do you know what the payment on your mortgage will become? Can't make an accurate plan if you don't know your mortgage payment, which means you can't calculate your DMI.

I see no harm in going thru the preliminary steps once you have selected your attorney - submitting checkstubs, assessing the rest of your budget, gathering creditor info, etc. and even having a preliminary plan.

[catleg]

I would wait for it to be finalized. However, I would probably then immediately file the ch13, and calculate the ch13 payback using the "old monthly payment" rather than the "new monthly payment". If you're over median they tend to try to stick it to you by calculating your plan payment based on the B22C means test rather than the Sched I/J budget. So this will give you a little more wiggle room in your plan. (Unless the "old monthly payment" is so bad that you can't come up with a workable plan). Not sure if this makes any sense. :-)

[SMinGA]

I would not recommend using inaccurate information on your schedules - such as intentionally stating your mortgage is more than it actually is, then swearing under oath at the 341 that the petition/plan is correct. Is it worth the risk of getting caught in a lie?

I had to forward proof of my mortgage payments (not paid thru the plan) to my atty who then forwarded them on to the trustee. If my payment had been less than what I put on the schedule - Uh Oh!

[momofthree]

I would wait for it to be finalized. However, I would probably then immediately file the ch13, and calculate the ch13 payback using the "old monthly payment" rather than the "new monthly payment". If you're over median they tend to try to stick it to you by calculating your plan payment based on the B22C means test rather than the Sched I/J budget. So this will give you a little more wiggle room in your plan. (Unless the "old monthly payment" is so bad that you can't come up with a workable plan). Not sure if this makes any sense. :-)

intentionally providing false info in order to lower your plan payment = fraud. I would not recommend that.

Wait until your mod is finalized. Our mod (also with GMAC) was finalized before our filing and the bk has had no effect on the mod.

[newbie2]

I would wait for it to be finalized. However, I would probably then immediately file the ch13, and calculate the ch13 payback using the "old monthly payment" rather than the "new monthly payment". If you're over median they tend to try to stick it to you by calculating your plan payment based on the B22C means test rather than the Sched I/J budget. So this will give you a little more wiggle room in your plan. (Unless the "old monthly payment" is so bad that you can't come up with a workable plan). Not sure if this makes any sense. :-)

If the OP does what you say then they will be committing a huge NO NO upon the court.

Schedules have to be filled out accurately. If the OP knows that the new mortgage payment is $1000 (an example) and the old one is $1400 and they list the OLD one that is misrepresentation.

I'm surprised that you would even give this advice.

[catleg]

The B22C is backward looking, that's why.

"Fraud upon the court". Get real.

The forms are the basis for a negotiation with the trustee. In most cases a budget/plan supporting the final amount agreed to with the trustee is never even filed as part of the case. You're assuming everything is much more tidy than it really is.

[newbie2]

The B22C is backward looking, that's why.

"Fraud upon the court". Get real.

The forms are the basis for a negotiation with the trustee. In most cases a budget/plan supporting the final amount agreed to with the trustee is never even filed as part of the case. You're assuming everything is much more tidy than it really is.

Line 47 is for future secured payments, then carried up to line 25B. No where does it say that it is backward looking. Also, if the OPs mortgage payment is paid by the trustee during the life of the plan the current (new) mortgage payment will be well known quickly to the trustee. If there is a big difference in the payment amount the OP can expect the trustee to question the disposable income.

[catleg]

Mea culpa. Guess it's not such a great idea. Maybe should file ch13 before the mod then.

[SMinGA]

The plan would still need to be modified if/when the mortgage amount changed.

Mea culpa. Guess it's not such a great idea. Maybe should file ch13 before the mod then.

Plus if there is mortgage arrears now, modifying the mortgage would probably amortize it and change what needs to be paid in the plan. So filing now and modifying later would require the plan to be amended in terms of what debts the plan is paying as well.

[catleg]

In general I was trying to make the point that reducing secured debt payment right before filing BK may backfire by just making more money available to unsecured creditors.

Not sure that is really actionable advice though.

[Skipper]

hi, i live in CA and have a question. i got approved for a loan modification on our first mortgage and GMAC will be sending the paperwork in a few days. however i need to file chapter 13 because of cc debts, student and car loans, and also for the purpose of stripping the 2nd. my attorney told me that i can file even though i have not signed the loan docs for the modification, and my loan mod would still go thru. i kind of worried though that GMAC might not finalized my loan mod and hold it off once i file 13.

anybody in the same situation? should i wait until the loan mod is finalized, or can i file now?

thank you for your responses!

If you are approved for a "Making Home Affordable" or "HAMP", I believe it is best if you wait until you are making trial payments. Once in the trial period, at this point, even if you file 13, I believe the servicer is required to continue with the modification, so long as nothing material has changed.

Go to the blogs at http://www.loansafe.org/ and read under the "free online help" tab.

Skipper

[jj86]

I live in CA. I am in the trial payment for my first loan for (9 months now...hopefully it'll go through)... and my second loan is over 100k. I have about 22k in credit card. I am considering chap 13 as I make over 60k/yr. In addition, my home is a duplex and I get about 1k in income/mo. My home is worth 7/8 of the value of the first.

After doing some numbers and talking to BK attorneys I would save about $42k (at the end of 60th payment) in the best case scenario. Is it worth it? Any thoughts?

Also, how could I just walk away from the home without having the 2nd loan chase me down ? Is there a way to settle w/ the 2nd for less than 100k and just walk away?

I also need a new car (I drive an old toyota 1994).... how long before I buy a new can can I file for bk? I was told that I can buy it and not have the auto loan participate in the chap 13... any thoughts on this one?

To further complicate the story, I may not be living in the home 6 months from now as my commute is getting tooo long.....I'll move closer to work. If I rent a cheaper place to live and rent my home, how will the creditors find out about my future expenses?

[espo1357]

hi, i live in CA and have a question. i got approved for a loan modification on our first mortgage and GMAC will be sending the paperwork in a few days. however i need to file chapter 13 because of cc debts, student and car loans, and also for the purpose of stripping the 2nd. my attorney told me that i can file even though i have not signed the loan docs for the modification, and my loan mod would still go thru. i kind of worried though that GMAC might not finalized my loan mod and hold it off once i file 13.

anybody in the same situation? should i wait until the loan mod is finalized, or can i file now?

thank you for your responses!

Get the loan modified if you are that close. The BK can wait.

If they are playing around with you with the loan modification AND you are facing some lawsuits or garnishments or something, then consider filing for the BK.

Bottom line is that if there is not much pressure, then go ahead and wait and get the loan fixed up (sounds like you want the home).

The BK does not need to be rushed imo.