Earlier this year, our mortgage holder (a bank that is not well loved by many of the people in the forum) agreed to modify our second mortgage. Effectively, they would reduce the mortgage rate to 1% for the following twelve months, gradually increase the interest rate for the three months after that and we would be begin making our regular mortgage payment after the fifteen months were up. Basically, not a bad deal. Late last month, my wife and I filed for Chapter 13 protection. Apparently, the bank did not like this and indicated in a phone conversation that the modification was now nullified. The reason I found this out was because I contacted the bank on a unrelated matter regarding our second mortgage. There was never correspondence from the bank nor communication of any kind from them regarding this. My wife and I must re-apply for loan modification again if we wish to have this loan modified. Has this happened to anyone? I knew there would be bumps in the road, but so quickly? We recently made our first trustee's payment and our 341 meeting is 8/25.
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What is the value of your home? How much do you owe on the 1st? HOw much on the 2nd?Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.) -
If you have no equity in your home, then the second mortgage can be removed IF you are in a chapter 13 only.Originally posted by mhsaltz View Post
Screw the second anyway, unless you have equity.Comment
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