Ch13 and Re-Negotiating the House

[chart2]

Looks like I might be a 13 soon. My house is now in foreclosure (due to divorce). Does the following sound feasible? has anyone been able to significantly reduce their mtg payment once in Ch13 and keep the house?

Thank you!

[momofthree]

A chapter 13 cannot change the terms of your loan or lower your payments. In order to keep your home, you would have to be able to cure the arrears during the plan, and continue to make your regular mortgage payment as well. For example, if you were $18000 past due on your mortgage, you would have to pay at least $300/mo for your 60 month plan towards your mortgage arrears AND your regular mortgage payment each month to the mortgage company.

However, if you have a large underwater 2nd mortgage that is causing problems, then you can strip that lien in a chapter 13 and it will be treated as an unsecured creditor in your ch.13 plan with any remaining unpaid balance discharged once your plan is complete.

[chart2]

I understand BK can not alter a loan and or its terms, I should have been more clear in thinking if I'm in BK the bank might be more open to a loan modification. Today the bank wont bother with me as my monthly budget id 2K upside down therefore in their minds lowering my monthly payment is pointless.

Thank you.

[helpme2010]

I think most people will tell you don't reaffirm, let go of the house and start saving your money, then in a few years or more when you are really on solid ground and have saved a lot of money, start fresh with a new home. For me, I will be a renter for many years before I plunge my life into a house again.