Discharged!!!!possible home mod

[TSHOCK84]

i Was just discharged!!!before i filed Bankruptcy i was in the process of trying to do a home mod and low and behold 2 days after discharge i got a call saying ive been approved for trial period home mod.

i have a question..this is my situation

1st mortgage 112,000 i did not reafirm
home equity loan 104,00 i did not reafirm

1st mortgage says they have approved me for the making homes affordable trial period for a great apr and very low paymen $358+tax+ins total 725.

the only thing i am worried about is that if i go ahead and take this deal that the 2nd mortgage(home equity loan) will forclose on me. does anybody have experience with this?
also 1st mortgage says that 2nd cant forclose over the first

any help will be greatly appreciated


thanks
troy

[helpme2010]

I ran into a similar situation where my mortgage company was offering me extension home loan mods during my bk. I did 2 home loan mods with them prior to BK and each loan mod they jacked up the price by $500, finally the last one would be more than I was originally paying on the loan.

I was tempted to fill out the paperwork to try to delay my foreclosure, but not sign up for the program.

[pavlikclan]

We are in the trial period of making home affordable as well. I have done a lot of research online about this and the one thing I can say right now is don't get your hopes up to high. It is simply a trial, they can come back and say you don't qualify and demand any past due portion, interest and fees all at once at the end of said trial. This will include the difference between your trial period payment and your actual payment amount.

I am unsure on the second loan. We have 2 loans as well however that is how our note was written when we purchased the property. It wasn't a home equity line or anything like that we financed our mortgage in an 80 20 split basically. We are in the trial period now with our primary and have not had any problems with the second trying to foreclose on us. We were denied the program by the second mortgage company all together. We are going to reapply I believe on that one.

From all the research I've done though the program is being implemented very very poorly by the lenders. Denying people that actually qualify, trial periods lasting as long as 12 months or longer, then denying them so the people have whatever they were behind initially, then all the new they are behind because of the difference between payments, to pay back and they want it today not tomorrow not next week.

[tcreegan]

Hi TSHOCK,

Watch for the trial then back bait-n-switch, also the 'mod is only for 5 yrs then back' You didn't reaffirm, so don't do anything to get yourself back on the hook! I would run all papers to be signed past a BK attorney. That way if they try to push the terms back up, you can tell them, 'if you do, I walk' That discharge could be a pretty good bargaining chip!

Unless you have a split mortgage like pav, in a foreclosure the 1st gets paid 1st, and the 2nd gets the leftovers. So if there is no equity past the 1st mortgage, the 2nd is essentially worthless and will be for years. They might be willing to settle, some folks have posted settlements in the 4-10% range.

Congratulations on your discharge, keep us posted on how things work out!

Tom in Colo

[AngelinaCat]

CONGRATULATIONS!!!! While I don't have any words of wisdom about the home loan, I certainly can offer you your Victory Dance to celebrate the coming of the New year. Here you go:

http://www.youtube.com/watch?v=f9aA_fba_To&feature=related

[SetMeFree]

I am presently about to submit my making home affordable paperwork. As I understand it is best to file for bankruptcy after you file for the mod correct? Do I need to wait until the mod is approved before I file for BK? I would like to file the BK ASAP considering if I have a higher paying job opportunity I didn't want it to impact the filing.

[helpme2010]

I went through 2 home loan mods prior to filing bk. Each was only 6 months long and after each one, they jacked up the rate by $500. At the end of the 2nd loan mod, they bumped the price of the loan a little higher than what I was paying before the loan mod process, so I couldn't afford this amount.

I agree with the advice about having an attorney read the documents to make sure you aren't on the hook. I am also very suspicious that the mortgage company can simply foreclose on you after the loan mod process, regardless if you make all your payments and on time.