Mortgage Loan Modification During Chapter 7?

[kcfaninin]

We will be filing Chapter 7 the middle of October and will be reaffirming on our mortgage. Back in July when we started to think about filing, we also applied for a loan modification and we were pre-approved. The packet has arrived and they are requesting bank statements, tax returns, paystubs etc. If I send all the required documents in, will filing Chapter 7 hurt our chances of a modification? Chase said it would take about 90 days for final approval and notification of our new payment amount. We meet with attorney again on Oct 12th to finalize our filing. Can our attorney negotiate a lower payment for us during our filing? If we file before Chase makes a decision, can they deny us because we wil be in active BK and not discharged yet? Chase told us not to make our September payment until they receive our documentation. It's making me nervous to skip a payment. Any advise would be helpful.

[DEBTCHAINS]

Interested to know how your loan mod turns out. Chase has been HORRIBLE for us. We were told things by multiple people, and most of it turned out to not be true, or good advice. We were "pre-approved" then told if we made our new payment for 3 months, we'd be good to go. (and, after calling for over a year to ask when we could apply, when it came close to our current loan adjusting, also told in so many words not to make payments.) Now? We're having to re apply again, after being told that our first three payments were a forebearance, and we'd have to come up with 14k in late payments. (we were NEVER late before this) We're hoping we get the loan mod, but I'm leery for sure. We've been told we qualified for the Obama plan, then we didn't, then we did. Told they tried contacting us on multiple occasions. (I called monthly, and gave out my cell # and told them to leave a message)

They've flat out lied to us at times, and too many people working on our case at one time. It's been horrible.

Good luck, hope yours works out. We're waiting to hear on ours before making any decisions with a Ch. 13.

[Calthius]

Our mortgage company modified our mortgage through the bankruptcy. We were undecided with what we were going to do and stopped making payments a month after we filed. This got there attention and they offered us a loan mod to stay in the house. In the modification it states a fixed interest rate and that they will bring the loan current after the reaffirmation agreement has been approved by the court.

[kcfaninin]

Interested to know how your loan mod turns out. Chase has been HORRIBLE for us. We were told things by multiple people, and most of it turned out to not be true, or good advice. We were "pre-approved" then told if we made our new payment for 3 months, we'd be good to go. (and, after calling for over a year to ask when we could apply, when it came close to our current loan adjusting, also told in so many words not to make payments.) Now? We're having to re apply again, after being told that our first three payments were a forebearance, and we'd have to come up with 14k in late payments. (we were NEVER late before this) We're hoping we get the loan mod, but I'm leery for sure. We've been told we qualified for the Obama plan, then we didn't, then we did. Told they tried contacting us on multiple occasions. (I called monthly, and gave out my cell # and told them to leave a message)

They've flat out lied to us at times, and too many people working on our case at one time. It's been horrible.

Good luck, hope yours works out. We're waiting to hear on ours before making any decisions with a Ch. 13.

I have had a horrible time with Chase too!! Back in July they told me I would be receiving a "packet" in 2 weeks. In that packet would be all the information and forms I would need to fill out and mail back. A month later No Packet!! Called and they said give it 2 more weeks. Well, 2 weeks turned into 3 months. I would call every couple weeks and had different people tell me 10 different things, wait 2 weeks, it was mailed last week, don't make a payment until you receive the "packet", call back on Oct 5th, I'll send you out a new packet, blah, blah blah!! It's been very frustrating, now we are 2 months behind because they don't want a payment until I send the packet back!! Really?? The one I hadn't received until today!!!

[kcfaninin]

Our mortgage company modified our mortgage through the bankruptcy. We were undecided with what we were going to do and stopped making payments a month after we filed. This got there attention and they offered us a loan mod to stay in the house. In the modification it states a fixed interest rate and that they will bring the loan current after the reaffirmation agreement has been approved by the court.

So, did you apply for a modification prior to filing? Or did you apply after they got notice of you filing bankruptcy? Did your attorney help you get the modification? How did that work, did he just request that your payment be lowered? Our attorney mentioned something about getting our payment lowered in our initial consultation. We thought he was kidding!!

[BKInLA]

Updates to this thread would be interesting seeing as how it's been a while now since the OP may have filed.

I've been in the process of a loan mod with PenFed since last Sept. (total of 5 months) and they have been dragging their feet the whole time. I was late (29 days) two months now and I'm finally seeing some movement on their part but nothing solid. My attorney advised me to call them and tell them I'm in the process of filing and see if that speeds things up any.

I'm just worried that it will backfire somehow...

[qsr]

I'm about to file, and I'm behind about 6 months on my Mortgage. I'm hoping BoA will work with me when I get a job in the next couple of months. They won't do shit for you if you don't have a job yet, of course. I'm going to file Ch7 to at least delay the trustee sale.

[Chowder]

My attorney advised me to call them and tell them I'm in the process of filing and see if that speeds things up any.

I'm just worried that it will backfire somehow...

Generally, that will bring the absurdly slow process to a halt. Some lenders wont talk until it's discharged/closed, some make you start over with other departments.

There are folks that have been fighting for over a year to get a mod. That is the REAL loan mod, not some open ended in-house "trial period".

[123ABC]

I was 2 months behind on my mortgage when I filed Ch7 and let it fall another 2 months behind to get the banks attention. I had beent trying to get a mod for 10 months prior to this!!!! Filing ch7 and not making the payment worked. I got my mod as of Jan 1st! They took my arrearage and rolled it back in and lowered my interest rate to 4% fixed for the life of the loan.

[Chowder]

If that's the permanent mod, you are VERY lucky.

[Bandit5]

Mortgage Loan Modification During Chapter 7

We are right at the beginning of deciding on Chapt 7 and want to assistance with "Mortgage Loan Modification During Chapter 7". We have read earlier posts and are encouraged. Wondering if we can get some recomendations to a good, honest and knowledgable BK Attorney in the Sacramento area?