Chances Of Mortgage Modification After Discharge

[Ann]

All,
After reading so much on reaffirmations and modifications on mortgages I was just wondering what are a home owners chances of getting their mortgage modified after a chapter 7 discharge and especially when they did not reaffirm their mortgage with the mortgage company? I would really like to know if modifying a mortgage changes the whole picture. I would assume there are documents that must be signed and when doing so what are the consequences?

[tcreegan]

don't reaffirm

Hello Ann,

Is the current mortgage payment too high?

Are you underwater on the mortgage? (loan balance exceeds house value)

Are you current on the payments?

You got a discharge, and you are current with your payments, and you can afford the payments, you should NOT reaffirm. NOT NOT NOT Just stay in the house and keep making payments.

You got a discharge, you are not current with your payments, and you cannot afford the mortgage payment, you are underwater on the house, you should NOT reaffirm, you should go find something more affordable.

You got a discharge, you have some equity in the house, you are current with your payments, but the payments are just a little to high for your budget.....then ask about a modification.

Standard Warning: If you reaffirm, you are signing a new contract. The terms can change, read all documents carefully. Better yet, have your attorney read them carefully. You now become legally liable for the debt. If something happens in the next 8 years and you default, they foreclose, sell the house at auction. And sue you for the difference between the auction price (minus costs) and the loan balance. Standard Warning

Think carefully about this, it is a big decision. Go over it with your attorney.

Best to you in this,

Tom in Colo