Saving Ch13 and delinquent mortgage.

[spidge]

Wow Pandora. You sure had a nightmare lender. First off things did change as foreclosure proceedings must now be suspended while being considered for a mod. Its called dual tracking. The second point is that our loan servicer and investors have given us very reasonable treatment over the years. Our first mod took about 6 weeks and was a couple years before we filed BK, but after just one year I reconsidered as it was not a long term solution and we would be back in the debt mill again. So I called and was successful in obtaining another mod that was actually quite good in my opinion, but when I was injured I could not keep it or anything else current. This latest mod did take quite a bit longer but the results are stellar.

Thanks Pandora for taking the time to share your thoughts, experience, and suggestions. I to save everything. I have files that my wife questions the need for.

[Pandora]

Spidge - I'm glad things have changed! Praying all works out and everything goes the way you need it to

[spidge]

Is it possible to obtain a discharge while in a trial period for a mortgage modification?

I ask because we could just about double our payment, but that would leave us finishing when the modification is still not completed and in place. I'm good either way but it sure would be stellar to finish even a few months early.

[despritfreya]

Is it possible to obtain a discharge while in a trial period for a mortgage modification?

Spidge,

Your attempt at a loan mod has no impact on your bk. Once you have completed all plan payments and any other non-monetary requirements such as sending tax returns to the trustee, you will be entitled to a discharge.

Edt to add: I suppose I should qualify this. Such has never happened in a case I handled but there is a possibility that a modified plan would be forced upon you due to an increased ability to pay (lower house payment ='s higher plan payment). Don't rock the boat as I think you are close to the end anyway??????? Just do what you need to do and follow the Plan without throwing red flags that you can now afford to pay more to your general creditors.

Des.

[spidge]

Spidge,

Your attempt at a loan mod has no impact on your bk. Once you have completed all plan payments and any other non-monetary requirements such as sending tax returns to the trustee, you will be entitled to a discharge.

Edt to add: I suppose I should qualify this. Such has never happened in a case I handled but there is a possibility that a modified plan would be forced upon you due to an increased ability to pay (lower house payment ='s higher plan payment). Don't rock the boat as I think you are close to the end anyway??????? Just do what you need to do and follow the Plan without throwing red flags that you can now afford to pay more to your general creditors.

Des.

Thanks Des, the change in DMI is a concern. Will be patient then and keep the boat steady.

So would you say that it is unlikely that the mortgage company would protest the discharge in any way? They were paid the arrears from my original filing date in full at the beginning of the year.

[despritfreya]

So would you say that it is unlikely that the mortgage company would protest the discharge in any way?

The lender really does not care about the bk. It only cares about getting its payments - which it is.

Des.

[Pandora]

Spidge

Edt to add: I suppose I should qualify this. Such has never happened in a case I handled but there is a possibility that a modified plan would be forced upon you due to an increased ability to pay (lower house payment ='s higher plan payment). Don't rock the boat as I think you are close to the end anyway??????? Just do what you need to do and follow the Plan without throwing red flags that you can now afford to pay more to your general creditors.

Des.

THIS. Yes, exactly what our lawyer said and why he told us to get a mod before we filed if we were able.

[spidge]

So it is about that time of the month when the Trustee in our case distributes the payment. So I went on 13Network to check it out and found this new box on the site. The box on the right in the attachment is the one in question and includes a bit more info. The item of interest that has me excited is the number of payment remaining. I have it down as 7 but he has 4. I'm game for that. The payback percentage was only 3% until the priority claims were all paid in full then adjusted up, but I thought the payback percentage would have been increased upwards on the unsecured claims too. The base did go up but the payback did not. No adjustments have been made, so if this stands as is we will finish 3 months early. What a deal.

Did I say I was excited? Fingers crossed it stands.

[sophieanne]

Spidge, I'm cheering for you..hoping what you see, is what is is

[spidge]

The countdown begins.
5 payments to go.
I am becoming a bit excited, but keeping it in check as there is an AP to deal with to complete the Lien Strip. We are about to make the 3rd payment for the mortgage trial so should have that deal done soon. The trustee and attorney say to stay the course and pay no mind to the figures seen on 13Network. I am so looking forward to helping my young adult kids get moving in life. Its one of many reasons we did all this.
Fired Up, but in a good way!!!!!!!

[jange]

spidge, glad to hear things are finally going your way!!! 5 months will go by quickly.

[sophieanne]

Hi Spidge..that is very exciting...i'm getting excited about going under 20 payments, but somewho 5 outstanding does seem a lot more exciting!!!!

You can see that finish line...go! go! go!

[spidge]

Today we received notice through our attorney that our mortgage modification has been approved and that we should receive the final paperwork soon.

So another item to check off the list. NICE!!!!!!!!!!

[sophieanne]

Congatulations!!! It's nice when everything comes together!!!!

[spidge]

4 Payments to go!!!!!
So looking forward to discharge. I know it won't get me to all my goals but it sure helps to have that cash available to chip away at them.

I am so excited that I am able to start looking at my goals and change them to better help my children.

Sophieanne, I was so excited once we were down to less than 24 payments that I started hunting for ways to pay off early, but in the end I realized it would be better to just relax and ride the plan to the end.

Now I just need to find the $2K for the AP to complete the lien strip. No worries as it will happen one way or the other.