Home in CH7 but now signing Loan Mod

[gophermn]

This thread prob goes under the Mortgage section but it sort of applies to CH7 as well

If my home was discharged in CH7 BK but I choose to keep making the house payments "out of good faith." Will signing the Obama Home Loan Modification Program with GMAC revive the credit reporting on my house?

Right now I don't believe anything is being reported to the credit bureaus because I never signed any reaffirmation papers. I am curious once I sign and I acknowledge my new % rate (i.e. mortgage payments), if the home once again goes on the 3 credit reports.

[Chowder]

Creditors are not required to report at all. Some continue to through BKs, most don't.
Signing a new contract with a company that does, should result in that history being reported.

[gophermn]

But if my house was discharged in BK, and not reaffirmed, why would they continue to report?
I am just not sure signing this loan mod is smart because if you think about it, I have no ties to the home right now. I could walk away and nothing would show on the credit reporting because again - it was IIB.
Thoughts?

[mama2three]

If you sign a modification it is essentially going to be a new loan and you would be responsible for the loan. Should you choose to walk away in the future, they could chose to come after you for deficiency.

It will be as if you took out a new loan.

[car67]

Hang on A Loan Modification isnt a new contract in the sense it bestows legal financial responsibility on a post discharge Chapt 7 Residential home loan. Altering a loan that was issued prior to 7 remains the founding base... I wouldnt think signing a loan mod after 7 would give the postion in favor back to the lender in the aspect the borrower could walk and now be held liable because he accepted a loan mod.... He didnt take a new loan out? Is good debate with way!

[gophermn]

Thanks all for the debate. I get more intellectual replies in here then working with the lender. I mean, All I asked them is because my home was IIB, will the loan mod revive the BK and begin reporting again?

I mean, if I went out and bought a new house then YES, it would be a new loan and new reporting to the credit bureaus. But, if this home was IIB and has not had any reporting since 04/2008 then I wonder if they remove the IIB and start me out with a new loan and new reporting?

I will call the Lenders BK dept and ask (for the 2nd time)

[mama2three]

Could be true- good point

Hang on A Loan Modification isnt a new contract in the sense it bestows legal financial responsibility on a post discharge Chapt 7 Residential home loan. Altering a loan that was issued prior to 7 remains the founding base... I wouldnt think signing a loan mod after 7 would give the postion in favor back to the lender in the aspect the borrower could walk and now be held liable because he accepted a loan mod.... He didnt take a new loan out? Is good debate with way!

Good point. It could be viewed as the original loan.

It was my understanding from trying to work out a modification with BOA that they would issue new loan numbers, essentially creating a whole new loan.
Maybe that is lender specific

[Chowder]

But if my house was discharged in BK, and not reaffirmed, why would they continue to report?

Because you are making the payments.