Loan Mod after chapter 7 in CA

[Tgpatrsn]

I just went through a chapter 7 here in ca and received my discharge 3 weeks ago. I have a first mortgage 640k and a HELOC that have not been paid for over a year. I tried a loan mod but Wells Fargo denied me. Anyway I received a letter a week ago from them stating they received notice of discharge and if I have any questions to call them. I did yesterday and they want to work something out. My home is worth 150k less than what I had owed. Has anyone got a loan mod after chapter 7 and not reaffirmed the debt? The bank sent me to loss mitigation and they are sending me a application to fill out. By filling out this app I am not taking responsibility for my discharged loans am I? I figure I have nothing to lose by trying and if they offer me something crazy I just walk

[msm859]

Filling out the app will not obligate you for the loan. I would say you have nothing to lose by trying. I was able to get my loan modified by Wells Fargo prior to filing -- it was quite an experience.

[tcreegan]

Hi TGpatrsn,

With no equity in the 1st, the 2nd is essentially worthless. Instead of modifying you should be negotiating a settlement to release the lien. 150K underwater and housing prices not exactly predicted to climb fast, not only is the 2nd worthless but it is going to be for many years. Try to settle for 5%, hardest part might be finding the right person who actually has the authority to make the settlement. Have a lawyer read the agreement over to make sure the lien release is solid.

If you are trying to modify the 1st, same thing; find the person who actually has authority to make new terms, your bargaining chips are that you are discharged and can walk leaving them with a 150K + loss. Again, have a lawyer read it over, ask if only modifying the original loan still keeps it discharged.

Good luck with this, let us know how it turns out!

Tom in Colo

[Tgpatrsn]

Thank you for the responses. I'll post what happens

[Peeps]

Hi Tg

I can't really speak to what happens in CA, but I spoke to several attorneys last week who handle both BKs and loan modifications. If you have the resources, I would really recommend having an attorney work with the mod. I realized after talking to them that they're much more adept at maneuvering within the system than us first-timers. They also seem to have a good feel for goosing up the terms of the offers so you can get the most out of your modification. I'm sure they're not doing anything we couldn't do for ourselves... they just seem to have a lot more experience. Anyway, at bare minimum you might want to do some consultations with attorneys that handle both BKs and Mods in your area - they've got plenty of good advice to offer. Best of luck.