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Loan Modification before filing ch 7 - questions

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    Loan Modification before filing ch 7 - questions

    Our mortgage company is IndyMac and they have been very UNhelpful over the past year with regards to paying our mortgage.

    I was considering trying for a modification as soon as possible until I got a closer look at the paperwork. It is a three page "Hardship Affidavit" that we are required to fill out and sign. The first page has some statements on it and boxes that you check if it applies to your situation. Here's the one that concerns me:

    "My monthly debt payments are excessive, and I am overextended with my creditors. I may have used credit cards, home equity loans or other credit to make my monthly mortgage payments. I have provided details below under 'Explanation.'"

    Would you sign something like this knowing you will be filing ch 7 later in the year?

    On the last page it asks us to sign and "certify that we are willing to commit to credit counseling and it is determined that our financial hardship is related to excessive debt."

    Anyone else have to commit to credit counseling for a loan modification? If so, what kind of counseling are they talking about and could it be the same class taken before filing BK? That way at least I could kill two birds with one stone.

    Thanks!
    Lying awake at night...
    Waiting to file...
    Roughly $34,000 in credit card debt

    #2
    Is your ultimate goal to keep the house if the mortgage is modified or to surrender it?
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

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      #3
      I plan to reaffirm the home in the BK.
      Lying awake at night...
      Waiting to file...
      Roughly $34,000 in credit card debt

      Comment


        #4
        I wouldn't worry about them forcing you into credit counseling. They didn't insist it would be with someone of their choosing. You could talk with your car mechanic about it.

        Most likely it's just a formality that allows them to sell your modified mortgage to Fannie Mae.
        Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

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          #5
          LOL! Maybe I will talk about it with my mechanic!
          Lying awake at night...
          Waiting to file...
          Roughly $34,000 in credit card debt

          Comment

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