Loan modification AFTER discharge? Should we? HELP!!

[ljadams08]

Our Chapter 7 BK was discharged on 7/13/10 - Yeah!

We surrendered our home in the BK and now Wells Fargo is wanting us to modify the loan. We have been trying to modify with them for 9 months now and no terms were settled before we filed BK on 4/1/10.
The terms they NOW propose are terrible and we cannot afford them -
PITI they propose would be about 58% of our current income. We do not qualify for HAMP - the balance would be $465K and the home is worth only $280K. We are still in discussion with them and hoping for something better. Time will tell.

Now that our bk is discharged, if we were to SIGN a modification, does the debt become our responsibility again? Or, can we 'pay and stay' and choose to surrender and/or walk away in the future?

[TEW]

Don't sign anything Pay and stay or just leave. WF is not going to do anything for you. I short sold my house WF got paid in full. They made it almost imposable to have the closing. They added new charges and fees everyday.
JMHO that house is way beyond your means, so why are you staying there get on with your fresh start learn to live with in your means and enjoy life…..

[ljadams08]

We are hoping that Wells will offer us something better than the initial offer; I happen to work in a HUD Counseling agency and deal with the loan mods every day and we have seen some pretty great offers come from WF.

My question is more specifically - if an offer does comes OUR way that IS within our means - meaning 31%, if we SIGN, do we then become responsible again for the debt? We did not reaffirm the home, but again, if we sign a mod agreement, is this like reaffirming?

Obviously, we will not stay if we can't afford it. We've paid on time with no problem for 10 years, but in the last 4 years everything has changed. Income was lost and home values plummeted! Same story as everyone else. So we filed BK and are now discharged. We already have moved on and are enjoying life! All debts are paid, no Credit cards and we are saving $$ every month. We are just trying to determine if it's worth it to actually 'rent' our home until we WANT to move and rent somewhere else. We'd just like one more year here, if possible. Senior in high school....

[ConfusedinOC]

If you sign a new loan with Wells Fargo then you shall be responisble for the loan. If in the future you default and are deficient then Wells Fargo can go after you.

[TEW]

If you sign a new loan with Wells Fargo then you shall be responisble for the loan. If in the future you default and are deficient then Wells Fargo can go after you.

And for the next 7 years you have no way out.

[blockhead]

We are hoping that Wells will offer us something better than the initial offer; I happen to work in a HUD Counseling agency and deal with the loan mods every day and we have seen some pretty great offers come from WF.

I'm curious. What's a great offer. 2% interest or something else under the HARM or whatever it's called? Have you ever seen anything from WF that offered an 'in house' loan mod where they (and note owners like Goldman Sachs) agree to modify ?

[ljadams08]

We have actually seen WF offer quite a few 2% mods, stepping up the rate after 5 years. (It is HAMP - Home Affordable Modification Program) It is quite conceivable that we could be offered this. They are offering this to some even with a traditional in -house mod after being denied for HAMP

We are now debating and trying to find out what the chances would be that if we DID accept such a mod, which we could afford, and we stayed in the home for a couple more years and then tried for a short sale or DIL, most certainly with a deficiency, would they then come after us for a defiency judgment? I'm aware of the debt relief act/program through 2012 which may forgive such defiencies, but I'm not sure how or if this will apply to us. Given the discharge from chapter 7 - will that change things? Also looking into cash for keys, if we just wait til they foreclose and then move out to rent instead of accepting anything the lender may offer....

If anyone has any comments or suggestions, would love to hear!!

[Tommyboy918]

I put off my chapter 7 to try for a remod with Chase under hamp. Denied 7 months later. I also have an investment property I am trying to remod. It has been 6 months and they have not even givin me a trial payment plan on that one. I have now filed Chapter 7. I have sent a letter of dispute to Chase after the denial. I am moving forward with or without my houses. Either they remod them or I will be collecting rent and living in one for as long as I can for free. I am not paying another dime without a remod. I know I qualify my income has dropped by 50% and my mortgage payment is darn near 50% of my income. I figure I can save for the next 5 years and darn near pay cash for my next house.