Has anyone appled for a loan mod on their house while in Ch. 13?

[NeedOptions]

After just receiving confirmation, I figure I might as well go all the way. I am currently $100k upside down on my house. I just received confirmation on my ch. 13 bk the other day and was wondering if I should I ask Wells Fargo for a loan mod. Do I need my lawyer or trustee's permission to do this? I don't believe Wells Fargo will talk to me as I am in an active bankruptcy. Anyone go through a loan mod during bankruptcy? Thanks!

[Peeps]

I haven't done either a BK or mod (yet) but I talked with several attorneys about doing both. The recommendation that I heard pretty consistently was to wait until after a BK to do a modification. The biggest reason that was given didn't really have to do with the ins-&-outs of the BK, but instead with the impact of it. It can favorably impact your debt-to-income ratio, which they say really helps when the underwriter is evaluating the mod application.

My neighbor is trying to keep his home and says he's doing a Ch 13 and a mod at the same time specifically to help him stay in the home. He has a lawyer handling both issues. He tried to do some mods for the past year or two, got turned down a couple of times, got behind, and is now using the Ch 13 in combination with the mod as a last-chance thing. He mentioned that if he could do it all over again, he'd do the BK first and let the dust settle before doing the mod request. Anyway, I guess my long rambling point is that it appears you can do them at the same time. But if you have the luxury of time, you might want to consider phasing them.

[NeedOptions]

I understand that if, by some miracle a loan mod is granted, I would more than likely have to turn the money over to the trustee. I'm all for that! At least I know that after 5 years, my payment would be still be less than what it is today. I havent missed a mortgage payment and I am current, so I am not even sure they would help me. I almost wish I missed a few before I filed for ch 13.

[bladerunner]

I always believed in order to get a loan mod, one would have to be late a few mortgage payments or more. I have been told that, why would a bank give you a loan mod when the renter, ( because we're all renters of our homes, unless its paid off) is able to make the agreed upon monthly payments? One att.even advised against paying a reduced monthly amount on a trial basis to a loan mod, because the bank was going to" foreclose on you anyway"...(Att was right, they did foreclose and after 14 months home sold at auction last week). Loan mods are difficult to get, because the majority of homeowners are underwater(negative equity), and due to job loss and /or underemployment...it may be difficult to qualify...but it never hurts to try...

someone help me here... in a chap 13 can a judge reduce the principal of a primary residence or is it just an investment property? thx

[justbroke]

someone help me here in a chap 13 can a judge reduce the principal of a primary residence or is it just an investment property? thx

11 USC 1322 prevents the court from modifying the rights of a creditor on a secured debt that is secured by the debtor's primary residence (period).

You don't need to be behind to get an "in-house" loan mod or even the HAMP modification. The whole "I must be behind in payments in order to get a mod" came about because no bank would grant a modification if you were paying on time! I mean, why would they? HAMP relaxed some of that and it's basically if you're in an adjustable mortgage or your mortgage will adjust soon -- a problem with ARMs.

I never paid any "trial" for my modification, but I was a converted Chapter 7.

[Flamingo]

After just receiving confirmation, I figure I might as well go all the way. I am currently $100k upside down on my house. I just received confirmation on my ch. 13 bk the other day and was wondering if I should I ask Wells Fargo for a loan mod. Do I need my lawyer or trustee's permission to do this? I don't believe Wells Fargo will talk to me as I am in an active bankruptcy. Anyone go through a loan mod during bankruptcy? Thanks!

Your financial house after filing/confirmation is under the control of your trustee, not you. You would need trustee permission so the first step is to contact your attorney who will advise you if it is possible during your Chapter 13 as it probably will require a modification of your Plan and if he thinks it is workable, will contact the trustee. Best of luck to you.

[NeedOptions]

Thank guys. It looks like I'll run it by the lawyer. The only problem is that we got an incredible deal on our 0% payback to unsecured creditors so I really don't want to rock the boat.

[justbroke]

I never thought to ask if you had a second mortgage on that home and whether or not it was lien stripped?

[NeedOptions]

No second loan as I just have a first. Merry Xmas!