Loan Modification Question Please Help!

[cole1977]

We had our 341 meeting a couple of weeks ago. So far in Pacer it states "341 held and concluded" and "Awaiting discharge" So hopefully things are moving as they should. Anyways, we planned on not keeping the house because it is underwater by about $65,000.

We have Wells Fargo and since the 341, they have been calling us daily. They informed us of our options and we told them we are unsure of what we want to do. Before we filed we attempted a refi with them and it took them like 6 months and by that time we were underwater. Then we attempted Modification 2 other times with them, at that time, they were not willing to reduce principle and only lowered our payment by $130.

So my question is if we fill out another worksheet what is the "magic" number for expenses vs. income to qualify for modification? If you do modification outside the bankruptcy do have to reaffirm? And if we don't want to modify how much time do we have before we are kicked out? (our last payment was in March and we are in Florida)

[ConfusedinOC]

I have gone through modifications in the past. The number one number would be to have your payment including principal, interest and insurance at 31% of your monthly income. Basically they want you payment not to be over 31%. They also mentioned that I would have to be late on my mortgage.

If you modify your loan after discharge you will be signing a new document making you responsible for the loan thereafter. If you default and there is a deficeincy then your on the hook for it.

[tcreegan]

reaffirm

Good luck cole1977, we negotiated with GMAC for 6 months and never hit the magic number. I was going for the gov't req'd 31% front end ratio but GMAC didn't go for it. I have heard some WF success stories on the forum, though.

You can always re-negotiate terms outside the BK. It will be the same end result as a reaffirm.

Don't do it unless you get terms favorable for you in the long term.

Tom in Colo