Can a home be added anytime to bk??

[charmd]

I have been approved for a loan modification as previously posted, but have a question.

Our attorney's office called (left a message) and he received a copy of the modification to sign for the courts.
If we modify the loan (4.25% fixed being offered by GMAC) and at a later date can't make the payments can we still modify the plan to include surrendering the home?
Our ARREARS are being taken out of the plan and included in our new payment to GMAC.

We are self employed and I just don't want to close this option.
I have left several messages for our attorney, and would like to know this before I give him the ok to sign the paperwork. The waiting is stressing me out.

We are 1.5 years into a 60 month plan. If you need more info please let me know.

Thanks

[justbroke]

I added a home and surrendered another about 5 months into my "unconfirmed" plan. Yes, you can deal with this, but if your plan is confirmed, it requires a new hearing for the confirmation. Since you are only 18 months into your 60 month plan, surrendering could be an option. The problem with surrendering "too" late is what happens to the deficiency created.

However, you're in California where "purchase money" first mortgages are non-recourse. IN other words, if you never refinanced, then there would be no deficiency anyhow.

[charmd]

Thanks for the info justbroke- so even if we do a loan modification (we are confirmed) and later need to surrender the home that is an option. We did refinance the first in 2005 so this is not our original loan. We did not take an cash out if that matters when we did the re-finance.
I was reading something about not re-affirming home loans since then they could never be included in your BK and I don't know if this is just for a Chapter 7 or if by accepting the loan modification are we re-affirming the loan?

These are probably basic questions, but I don't want to mess anything up at this point.

[LadyInTheRed]

In a Chap 7, reaffirming a loan does not constitute a reaffirmation. A reaffirmation agreement must be filed with the court before discharge. Reaffirming a mortgage is not an issue in Chap 13. If you don't "surrender" your home in a 13, your mortgage does not get discharged.

Because you refinanced your original loan, your current loan is not a purchase money loan. Unless the loan agreement states otherwise, if the loan is not discharged, the creditor can sue you for a deficiency. As JB states, if you surrender late in your Chap 13, there is a question about what happens to the deficiency. Something to ask your attorney about.

[charmd]

LadyInTheRed- I think I understand.
If we do accept the loan modification and at a later date want to surrender the home we still have this option in a 13. We would just need to do it before we get too close to the end of the 60 payments so anything unsecured can be added.
We still have 3.5 years left in the BK and would know within the next 12 months if this is going to work.

Thanks to both of you for the insight! If I am missing something please let me know.

[LadyInTheRed]

I'm not sure how late is too late to surrender your home. I suggest you discuss it with your attorney now so you fully understand the consquences.

[charmd]

Just left them a message- thanks.

[tammygirl1]

charmd...please keep us posted as I am also interested in when it is too late. I am also in California.

[Billssuck]

I modified my ch13 1 year into my 3 year plan to surrender the house. No problem for us...still waiting on foreclosure though...

[charmd]

Billssuck that is good to know- we are in a 5 year plan (only 1.5 years into it) so I am thinking that maybe I have another year or so to decide if the loan modification is going to work. Still no word from the attorney- left another message today.

So from the responses above I don't think the question is if I accept the loan mod can I surrender the home at a later date if needed. It is more like how far into a 13 can you still surrender your home? My understanding now is that by accepting the loan mod I won't give up my ability to surrender the home later if needed.
I have worked on the modification for 1 year so really would like to give it a chance.
Thanks again for all of the information everyone-

[charmd]

This is in response to Tammygirl1- I spoke with our attorney and he said we should not wait any longer that half way through the BK to surrender the home. You can probably do it later, but I think it is less complicated.

Also, the arrears from our first he has put to our unsecurred creditors now that the home has been brought current. I understand this, but it is something you might want to consider.
I am not sure what we are going to do since we still have the HELOC to pay on, but are trying the new loan mod for now.