Wait for permanent mod before chapter 13?

[brokehmowner]

Hello everyone. First post but have been reading for about two months. I have read pros and cons on waiting for permanent mod before filing chapter 13 (not necessarily on this forum.) my question is my 1st is BOA owned by Fannie. My 2nd is Green tree owned by BOA. Afraid BOA might get ticked off if 2nd is stripped and find some reason to mess up my permanent mod on 1st. Any body have opinions on whether to wait or not?

Also we are making all payments on cc's right now because afraid of (1) showing late payments on credit report in case things don't work with the permanent mod and we have to move. When we were looking at rentals before they were willing to overlook that we went behind on mortgage only and (2) afraid of getting judgments if we don't pay while waiting for permanent mod. Is continuing to pay on cc's bad? We think we can continue to pay for maybe 3 to 5 months but have no idea how long permanent mod will take

[SMinGA2]

If you have a permanent mod - the lender can't go back and do anything to change it. Permanent is, um, permanent. Once its done, they cannot un-do it.

[brokehmowner]

If you have a permanent mod - the lender can't go back and do anything to change it. Permanent is, um, permanent. Once its done, they cannot un-do it.

It's not permanent. It's a trial mod. I'm waiting for the permanent

[SMinGA2]

You didn't post about a trial mod. You asked if doing a ch. 13 for a lien strip could somehow mess up the permanent mod on your 1st mortgage. The answer is no.

[Pandora]

We were told by our attorney it would be best to get our perm. mod before filing Ch. 13 - that way the payment would be set not only for the mortgage (first 5 yrs) but also the DMI. Essentially we will be out of our Ch. 13 at the same time as our rate (HAMP Mod) is set to go to 3%. We obtained the perm. mod late 2/10 and filed Ch. 13 after we received the perm. mod paperwork signed by the bank. Without that - nothing is concrete (as far as HAMP goes). If you're going for a HAMP mod, then you have to have signed docs back or its not valid (per HAMP guidelines). We had so many issued with our lender (PNC) and had to push extremely hard to get those signed docs to give to our attorney as well as the Trustee. You can, however, still file now and then modify your plan later if you really have to file.

One thing to consider is can you afford the house (HAMP or In-House mod, makes no difference) in the long term? If your rate is waterfalled and / or adjusts at some point in time, your payment will increase. As to BOA "getting ticked off" about stripping the 2nd (if you're able to do so) - they have no say in the matter; they can contest the value of your home, but if you get a true appraisal (not a BPO) and its underwater, they're SOL.

If you're planning on filing BK - then stop paying (and using) your credit cards - save that $; Loan mods arent based on your credit report - they're based on your income to debt ratio and LTV ratio. FWIW, most loan mods (HAMP based) take 6-18 months on average. Given the program is set to expire Dec 2012, who knows what will happen.

[itlm062]

i was in a similar situation, stopped paying mortgage on 6/2011, started HAMP on 7/2011, and filed on 8/2011.
the mod didn't go thru until 10/2011, and the trial period started on 1/2012, perm mod was granted at the end of 3/2012.

because the mortgage payment got reduced dramatically due the HAMP(went form a 7.5% loan to 2%, also stripped the 2nd as well in bk), our lawyer had to revised the plan, thou the payment to cha13 trustee didn't increase that much.
the person who was helping me had told me that was pretty fast for a loan mod to go thru, as he had other clients who started before me but was still waiting when mine was done.