CH7 Coming Soon, Help Me Stay In My House! Loan Mods!

[AlmostAmos]

OK - here is my deal in a nutshell. I am have not paid either of my 2 mortgages since the Jan payment. I am filing Ch7 in two weeks and I'm not sure what to do about my house... I want to stay here and continue paying but my problem is - I'm not paying NOW. I have NO interest in reaffirming the debt. I am not attached to this house in anyway. I simply want to avoid moving.

I have contacted Citi, who owns both of my mortgages, regarding loan modifications. They contacted me back (after a few months) telling me that they are both approved pending 3 trial payments. These payments are due THIS month. There is no way I can afford to do this until after next month b/c of the money I am paying for my attorney, etc. So, both of these mods are going to fall through & I'll have to start over.

When I file, I was planning on doing a "retain & pay" scenario w/ these even though I am not paying currently. My hope WAS that Citi would let me continue paying on the mods that I already had going. Well, it looks as if the mods will fall through as I am going to file w/o having something in place.

Any idea how Citi will act once I file? Will they allow me to start a mod even though I am not reaffirming? Or, once I file, are they going to start foreclosure proceedings & forget about trying to let me catch up & continue to pay? I WILL be able to afford it - the question is, will they let me?

Do you all think I have any possibility of staying in this house or will they start to foreclose after the discharge & won't deal with me any longer? Thoughts/opinions/ideas?

-AA

[mickeyme]

Not sure what Citi will allow you to do but be careful. If you do a loan mod after filing you need to make sure that that does not tie you back to the home. In the BK you will still have the option to keep the home as long as you make the payments and even though you are late if you start making the payments you should be fine. A loan mod is not needed to do this so don't be forced into something you don't need.

[AlmostAmos]

Not sure what Citi will allow you to do but be careful. If you do a loan mod after filing you need to make sure that that does not tie you back to the home. In the BK you will still have the option to keep the home as long as you make the payments and even though you are late if you start making the payments you should be fine. A loan mod is not needed to do this so don't be forced into something you don't need.

Thanks mickeyme. I realize that I have to watch that I don't do a "back door" reaffirmation after the Ch7. What do you mean that I have the option if I start making payments? Even if it is behind?

[helpmeout]

I think that if you do a loan mod after you file, you will be on the hook for the mortgage. Check with your attorney on this issue.

If you decide not to do the mod and want to keep the house, in order to keep it you will have to get current on the mortgage and stay current. You are already months behind. Can you get current quickly?

[AlmostAmos]

There is no way I can catch up my payments before I file. I can pay the current payments but not catch up the ones that are behind.

The loan mod paperwork that I received from Citi specifically says that if you file CH7 your personal liability for the loan goes away and will not stop the modification from occurring. Any idea what will happen to a modification request that is IN-PROCESS when I file?

[newbie2]

There is no way I can catch up my payments before I file. I can pay the current payments but not catch up the ones that are behind.

The loan mod paperwork that I received from Citi specifically says that if you file CH7 your personal liability for the loan goes away and will not stop the modification from occurring. Any idea what will happen to a modification request that is IN-PROCESS when I file?

No clue. I'm sure it varies though depending upon the bank. If you can't catch up on your payments and still want to keep your home, the best you can hope for is that they will want to work with you. Good luck to you.

[mickeyme]

AlmostAmos - What I was talking about was the "retain and pay" you mentioned in your first post. Typically as long as you pay the mortgage the lender will not foreclose...but sounds like you know that. I know you have missed a couple of payments but I am sure if you speak to the bank and start making the regular payment the bank will most likely not foreclose. At least that is what they did with me. I had missed a few payments but then startring paying again to buy me some time and all the letters stopped. The only difference was on the statements showed the pastdue amount.
good luck