Ch 7 filing with mortgage mod pending

[tigerman]

Has anybody done this and can you tell me what happened. My lawyer will be filing the petition the first part of Oct. and I am 3 months behind on my mortgage with BoA. My lawyer told me it will depend on the bank whether they will continue with the mod or request the past due amount be paid or move out. Personnaly I think the mod process is a joke, its been over a year now and nothing!.. and they wonder why there are still so many foreclosures

[JSchrader]

I can't tell you what your bank will choose to do. But as you note, many banks end up doing nothing in the end, regardless of whether you file for bankruptcy. It's a very frustrating process, and you have my sympathy.

[tigerman]

I just wanted to see if anybody else has done this and what happened when they did it.

[drowning123]

I was in the exact situation as you tiger, I think. I was 3 months behind. I sent in a mod application in July I think, and according to the bank's web site, it won't be reviewed until 9/30. The only thing I got from them was a letter stating that they will not be pursuing a foreclosure at this time and if I wanted them to stop sending me statements. I didn't respond. I haven't heard from them since. I had my 341 yesterday, which I sailed through. Waiting for my Report of No Distribution.

[newbie2]

Tigerman, what normally happens is that the mod process stops because of the automatic stay put in place once you file. I have heard though of others who have had their attorneys receive letters from the mortgage company asking if they can continue to talk to their client (you). Or perhaps ask your attorney to draft a letter authorizing the mortgage company to continue the mod process while you are weaving your way through the bankruptcy filing. Good luck!

[tigerman]

This is going to be a dumb question but could you explain to me what the "automatic stay" is?

[newbie2]

Not a dumb question at all. When you file for bankruptcy all of your creditors are put on notice to not try and collect the debt by any means (phone calls, letters, foreclosure, etc). This is the 'automatic stay'. Think of it as meaning "hands off". It lasts throughout your bankruptcy process until you are discharged or dismissed.

[drowning123]

To add: Let's say you get a call after you've filed, tell the creditor that you've filed for Chapter 7 and they need to contact your attorney. That's it. No further information. Some may just ask for you filing number and you can give that to them.

[tigerman]

Thanks for the responses, we want to keep our house but this whole mod process is terrible. I'm at the point now if they want the house back they can have it, I'll just keep making my monthly payment and see what happens after we file. I was 6 months behind but I was able to make up 3 so now I'm just 3 months behind. Thanks again and I will keep you all posted to what happens.

[tobee43]

Has anybody done this and can you tell me what happened. My lawyer will be filing the petition the first part of Oct. and I am 3 months behind on my mortgage with BoA. My lawyer told me it will depend on the bank whether they will continue with the mod or request the past due amount be paid or move out. Personnaly I think the mod process is a joke, its been over a year now and nothing!.. and they wonder why there are still so many foreclosures

i didn't have boa...but chase...and YES....i was in loan mod for 2 years actually with NO answers....

then we surrendered the house....filed....and now chase opened their OWN loan mod on a house we haven't lived in for 2 years...LOL!!!!!!

that doesn't help you...i'm sure boa doesn't want your house. go IN NOT on the phone...be a person talking to another person...face to face and they will most likely at least try harder to work with you.

best of luck!

[tigerman]

Thanks, I thought about doing that. Actually somebody from BoA came by my house about 6 months to talk about the loan but I was not home and he didn't leave a card or anything and I never heard from him again.

[StartinOver]

I spoke with a HUD housing counselor by phone to ask some questions about a package. She said, after you send in the package, follow up and get the recipients to agree that the package is complete they are not missing any documents. And then make sure they follow the requirements in this Supplemental Directive. (They can't drag their feet forever on determining whether you are eligible for the program anymore.)

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd1001.pdf

[tigerman]

I call every week to get an update and I get told something different almost every week. I called one week and they said my loan wasn't even under review and I had to redo everything. One week they said I was denied, one week it was in the final stages, one week I need to update my financial report( I've had to do that 5 times), the last 3 weeks I've been to told it's gone from underwriting to get the final approval and they said it should be within 60 days and 60 days have past. It's at the point now where I really don't care anymore, I get more upset and pissed off about this mod process than I do filing for BK. I thinks it a freaking joke!!!!!

[tobee43]

well....do not be surprised when they come a callin.


here we are....discharged...surrendered....almost 2 years ago...and guess what???

chase calls me LAST WEEK and tells me i'm in loan mod....and that i started that after my discharge....i wrote a thread about it because they wouldn't help me when i was trying to SAVE my home for 33 years...OH no...they waited 2 years and a bk discharge clearly checked off "surrendered"....LOL!! go figure.. (see my thread chase calls after discharge...you gotta be kidding me!! )...LOL!! but they were not. that's even funnier!

so i told them it's YOURS now...just KEEP the house...the black mold....the
10k worth of new fence...it' needs new plumbing, electric....and on and on and on....

here's to you chase...!!

[IBroke]

A great source to gather information about this topic is the modification-section of loansafe.org.