Loan Modification After Chapter 7

[tazzy20176]

I posted this in another thread, but thought I'd move it over here.

I just received an approval for a loan mod with Bank of America (formerly Countrywide). The only thing that's mentioned in the offer is that it is contingent upon Bank of America receiving a relief from the automatic stay. So I'm confused, it doesn't say that I'm not liable for the mortgage and why would they need a relief from stay if I was discharged back in March? I'm just hesitant to sign this loan mod and be held liable again. I'm still upside down, but my payment is the same as most of the rentals in my area. SO my intention is to say for a few more years when my daughter finishes high school. Will I still have the option of walking away without being held liable? Any advice would be appreciated.

[Stilltheone]

In a short answer, no. You're modifying the loan. The loan that was originally discharged through bankruptcy will technically no longer exist once you modify. So, you will legally be responsible for that loan/debt again.

We have thought about getting a loan modification, but we are upside down in our home. I like the fact that if things got really bad, we COULD walk away. I don't plan to walk away, but I like having that option in my back pocket, just in case.

Good luck to you!

[tazzy20176]

Ok thanks, although not the answer that I was looking for. I was still hoping that I could just walk away in the next few years.

[tazzy20176]

OK, so I decided not to sign the loan modification papers since I will not have the option of walking away at a later date. The reality is....I owe $400,000 on my house and the house next door to me just sold for $239,000. Enough said.....

[Spyatu]

OK, so I decided not to sign the loan modification papers since I will not have the option of walking away at a later date. The reality is....I owe $400,000 on my house and the house next door to me just sold for $239,000. Enough said.....

I feel the pain we purchase ours for 585k now is worth 410k

[novemberbg]

Hi!
Can you explain what you are saying? We paid 806k, owe 698k and house down the street just sold for 495k (ouch)

We are in the process of a loan mod too and are in the midst of CH 7 but as I read here, if we do get a loan mod we basically are re-doing the loan and would be responsible for it. If we do NOTHING , we can live here, keep making payments NOT reaffirm but then one day in the future we can walk away with no penalties? Is that correct?

Wont they ask is to reaffirm or not? We are 2 months behind on our payments right now but can make a payment next month if need be..

Thanks for your help