Ch 13 and loan mod - new guy with a stupid sad story...

[patshea]

hi all...sorry bout my ee cummings typing, but its late and i have to get to bed (im a teacher)

so i own a home. typical california 5/1 arm on the 1st (417k) and 5/1 arm on 2nd (129k) and found out about the ch13 bk lien strip, as my house appraised at 385k last month. i'm all set to file ch 13, but am wondering if i need to modify my loan first? reason i ask is i thought it was a 10 year fixed on the first and when i checked the docs saw it was a 5.

im with chase...i hear they don't give out loan mods easily. im a teacher with 12 years on the job, and my wife is self emplyed 15 years.

im worried my home might go up in value (i live in socal - the south bay area)) by the time i get through the loan mod process. i hear it takes a year. then the lien strip is out of the question on the 2nd. my loan is due to reset in about 16 months...and will jump quite a bit (from 6&1/8 to libor plus 2%).

advice?

[momofthree]

You can always attempt the mod, keeping a close eye on values, and when your home starts to approach the break-even point on the 1st, you can then file & do the lien strip. We're most likely heading towards a 2nd wave of foreclosures here in Cali, so my guess is that you'll have a pretty good amount of time before your home is worth more than you owe on the 1st. The mod is definitely worth a shot though. Ours took approx 7 months thru GMAC.

[Phx]

I started my loan mod (HAMP) before I filed a 13... There was a 3 month trial period and then a final approval on the 4th month, it was really quick.
Just FYI - I was 6 months behind on payments before they started working with me. IMO start the process now. Hope this helps.