Loan Modification & Ride Through

[AlmostAmos]

I have a first & second with the same company (Citi). I'm going to be filing CH7 here in a couple of months, and I will NOT be reaffirming my mortgages. As of today, both of my mortgages are late - as I'm working on a loan mod with Citi. If my loan mod does go through, my payment should be reduced enough to continue paying for the house (I look @ it as rent).

Anyone have an opinion on what would happen if my loan mod is not worked out prior to filing? Will they stop the process or will they let me continue with it & start paying my "trial" payments? I figure I won't have any problems if the mod gets worked out before hand...

Thoughts?

[momofthree]

Check out www.loansafe.org. It's a forum dedicated to loan mods.

From what I read when I was going thru my loan mod, once you file bankruptcy, they completely cancel out your mod and tell you to reapply after discharge...It's definitely in your best interest to finalize your permanent loan mod before filing.

[liboton21]

I was in loan mod with BofA thru NACA when I file BK7. All they've ask was an authorization letter from my attorney so the bank and NACA can continue with my mod. I was also 2 months late with 1st and seven months on the 2nd. BofA acted quick and gave me 2% PITI fixed for the life of the loan. I did not reaffirm the mortgage when I file for Bk7 lawyer used "retain and pay" clause.

[Ann]

My mortgage is through Citi... they were really difficult to get my loan modifcation. I was told I had too much unsecured debt for them to be able to help me. Yeah I know that is why I need help but to them it did not matter. All after I was told NOT to make a single payment on my mortgage. Yep, they told me after I was almost 90 days late that they could not help me until after I cleared up my debt load. I will try again but I'm not looking forward to it. I do not think they will help. They would never call me back when I called and left messages. My second mortgage company was more than willing to help me get a modification (although only temporary) . Good luck I really hope you have better luck than I did with them.