HAMP Mods and BK

[sofarsogood2]

Wondering if anyone knows....

Is a discharged mortgage always a discharged mortgage, even if you apply for a HAMP, or other in-house, mod? Could an application for a mod be construed in any way to be a reaffirmation of the debt?

We would like to apply for HAMP mod, but don't want to reaffirm unless the mod offer (if I can even get one) is really good and it is required that I reaffirm to lock in the offer. It would have to be a great offer, or we will let the house go. But we would like to try, just want to make sure that a mere application would not be considered a reaffirmation of any kind.

We are currently protecting the lein by making payments, but due to changes in circumstances, that will become impossible in the very near future.

Also, anyone have any luck getting a MOD after BK on a non-reaffirmed mtg.?

[HHM]

There is no 100% certain answer because the issue has not be tested in court. However, it would be a stretch for a bank to claim that a modified mortgage brings it back to life after discharge. Discharge is discharge. The ONLY way to create a live mortgage after discharge is to refinance. From what I can tell, the banks and their lawyers understand this fact, so I don't think you have anything to worry about.

Also, there are NEW HAMP directives coming out June 1st that requires lenders to consider a homeowner for modification during or after a bankruptcy. (presently, it is option for the banks).

[Skipper]

There is no 100% certain answer because the issue has not be tested in court. However, it would be a stretch for a bank to claim that a modified mortgage brings it back to life after discharge. Discharge is discharge. The ONLY way to create a live mortgage after discharge is to refinance. From what I can tell, the banks and their lawyers understand this fact, so I don't think you have anything to worry about.

Also, there are NEW HAMP directives coming out June 1st that requires lenders to consider a homeowner for modification during or after a bankruptcy. (presently, it is option for the banks).

Hi HHM,

I was wondering if I can get an opinion from you (partly based on the upcoming HAMP directives you mentioned...).

I have completed the steps needed to complete a mortgage modification, up to and including returning to the servicer signed and notarized (by me) permanent modification documents. All I am waiting for (in order to file Chapter 13), is for the servicer to send me my bank signed copy.

The only reason I have waited to file, is that I do not want to potentially jeopardize my modification. According to what I have read, and according to the servicer, it should not impact the modification, (but I just have no trust...), Yet the servicer will not put it in writing.

Do you think there is a need to wait for the bank signed permanent documents to be sent to me, or is it enough that I signed, notarized and returned two copies of the permanent modification documents to the servicer?

Thanks in advance for any thoughts you may have...

Skipper

[HHM]

If you are presumably that close to the end of the modification, then stick it out and try to hold off on filing until the modification is 100% in place.

[Skipper]

If you are presumably that close to the end of the modification, then stick it out and try to hold off on filing until the modification is 100% in place.

Thanks HHM.

EDIT: I just discovered the the broker was Countrywide operating a"doing business as" or "dba". Still, there has been no assignment of the original Note or Deed of Trust to Countrywide or it's successor, Bank of America. I don't know if it matters...

Skipper

Quick follow-up question. Do you think it matters that my servicer (BofA), nor Countrywide (which supposedly bought my loan from the broker who funded it) show on the Note? Only the original broker does. Same with the Deed of Title with the county recorder and the HUD documents.

I cannot find any evidence of the Note being transferred/assigned, and I do not believe the broker is still in business.

Thanks again for your thoughts...

Skipper

[momofthree]

Hi HHM,

I was wondering if I can get an opinion from you (partly based on the upcoming HAMP directives you mentioned...).

I have completed the steps needed to complete a mortgage modification, up to and including returning to the servicer signed and notarized (by me) permanent modification documents. All I am waiting for (in order to file Chapter 13), is for the servicer to send me my bank signed copy.

The only reason I have waited to file, is that I do not want to potentially jeopardize my modification. According to what I have read, and according to the servicer, it should not impact the modification, (but I just have no trust...), Yet the servicer will not put it in writing.

Do you think there is a need to wait for the bank signed permanent documents to be sent to me, or is it enough that I signed, notarized and returned two copies of the permanent modification documents to the servicer?

Thanks in advance for any thoughts you may have...

Skipper

I'm with GMAC and I never received those docs back. I kept copies of my own notorized docs. My online payment & rate info was updated to reflect the mod as were my statements and my "default" status was changed to "current" when they tacked the arrears onto the end of the loan. When all that occurred, I considered it finalized. That was back in Nov. 09 and it's been smooth sailing....

All this to say...you may not receive those copies, the banks are just a tad bit overwhelmed these days...

[Skipper]

I'm with GMAC and I never received those docs back. I kept copies of my own notorized docs. My online payment & rate info was updated to reflect the mod as were my statements and my "default" status was changed to "current" when they tacked the arrears onto the end of the loan. When all that occurred, I considered it finalized. That was back in Nov. 09 and it's been smooth sailing....

All this to say...you may not receive those copies, the banks are just a tad bit overwhelmed these days...

Hi Mom,

Did you wait for you online info to update, before you filed?

Skipper