Has anyone modified while in bankruptcy

[michaela]

i AM WITH CHASE JUST GOT OFF THE PHONE WITH THEM, THEY SAY THEY WILL CONSIDER ME FOR A MODIFICATION WHILE IN BANKRUPTCY HAS ANYONE REC'D A MODIFICTION WHILE IN A ACTIVE BANKRUPTCY

[shellbell]

I assume you are asking about a Home Mortgage Modification? If so, yes. I modified my mortgage while in Chapter 13. I just dealt directly with the Mortgage Company and told my atty afterwards. He then sent the appropriate paperwork to the court.

[charmd]

I just modified my first while in an active BK. In our case the arrears from our first were removed from the BK payment list and GMAC added them to our balance bringing us current plus lowered our interest rate to 4.25%.

The trustee required we take 70% of the scheduled payment due to GMAC through the BK and pay it to our unsecured creditors so our payments were not lowered.
Good luck. It did take me 11 months to get this done.

[michaela]

Wow some hope!!!! Shellbell who was your mortgage company??

[fslady]

Shellbell - I'm interested too! Did you have to pay points, appraisal, etc? My 13 has 3 more payments to go and I'd like to try a refi then.

[spidge]

Every situation is different but consider that your Ch 13 payment is based on disposable income just means you will pay the trustee rather than interest to the bank. Think about the tax implications. If you reduce your mortgage write off you may be in for a bit of a shock at the end of the year when you get to pay more income tax. It may be better to wait until you are nearing the end of your plan before acting on this opportunity.

Damned if you do damned if you don't.

[michaela]

My interest rate on my 30 year fixed mortgage is 13% I need to act now

[spidge]

My interest rate on my 30 year fixed mortgage is 13% I need to act now

Ouch!!

[shellbell]

Sorry for the late reply.

My Mortgage company is Bank of America. They wouldn't decrease my interest rate, but they added all my arrears on to the principal. (My arrears were almost 11K)
I was in my plan only 2 years(out of 5) when I accomplished this. It ended up reducing my plan base by 5K and helped me out tremendously. I got behind on my plan payments and had to have my case modified a few times. I was invisioning a major increase in my payment because of my shortage. It increased a little but not much.
Thank God for Home Loan Modification. I am now finished with all my payments and am just waiting on my discharge. ;) Good luck.

[shellbell]

Oh, and I paid around $300 for an "inspection". Which I don't recall anyone ever doing. LOL Also, my documents were Fed-exd and a Notary came to my house to make it all official.

[greenthinker]

shellbell,

I just started this process myself, and we too are with B of A, so I'm interested in your experience. How long did the whole process take? It sounds like they kept the terms of your loan basically the same, except for adding the arrears to the principal. Is that right? Thanks.

[michaela]

shellbell was your interest rate high????

[shellbell]

If I remember correctly it took 2 months with alot of persistance. I would post the website I originally found the how to's, but I know I am not permitted to do so on here. If anyone wants it, please message me.

Yes, my interest rate originally was high when I purchased my house because all of my other DTI. I am on an adjusted rate currently. Once my credit score climbs again I plan on remortgaging with someone else. My current rate is 6%, only because of the market. Hope this helps.

[BnkrptcyLwyr]

I just had a client receive a loan mod while in the middle of her Chapter 13. It happens, and it's ok.