BK7 and HAMP Modification Loan

[ChrissyF]

Not sure if this is the correct area to post this question,but was wondering if anyone was trying to get a loan modification while filing BK 7? My attorney said that it was okay. Just wondering if the banks worked with you or didn't because of the BK 7. Thanks.

[justbroke]

I did a modification after I filed Chapter 7. Actually, I was thinking of it and the Bank approached me right after filing! I had tried it before entering my Chapter 13, but the Bank canceled the request upon my filing of the Chapter 13. When I converted to a Chapter 7 and called them, they asked if I wanted a modification! The modification took 6 weeks and before discharge, I had already signed the modification paperwork! The modification took hold instantly without any of those dreaded "trial" periods.

Your experience with your lender will probably differ, but I found them MUCH more accommodating when they find out that you are in a Chapter 7.

[tcreegan]

Hi Chrissy,

I have seen at least a half dozen posts similar to justbrokes experience....pre-BK they got the run-around then after filing the lender gets serious about it.

Good luck with it, definitely worth a try!

ps: you could do a search on the forum using your lenders name, see how other folks made out with them.

[helpme2010]

I did a modification after I filed Chapter 7. Actually, I was thinking of it and the Bank approached me right after filing! I had tried it before entering my Chapter 13, but the Bank canceled the request upon my filing of the Chapter 13. When I converted to a Chapter 7 and called them, they asked if I wanted a modification! The modification took 6 weeks and before discharge, I had already signed the modification paperwork! The modification took hold instantly without any of those dreaded "trial" periods.

Your experience with your lender will probably differ, but I found them MUCH more accommodating when they find out that you are in a Chapter 7.

Weird, I have a similar experience. When filing chapter 7, the banks approached me for a mod. After discharge I asked for a mod and they said not enough time before the auction date. So I filed a 13 and tried the mod. They said no because of the bk. So I guess I am S out of luck. I don't know if they will give me any opportunities after the auction date, but I think this is it. Now I have to play the stalling game and stay as long as I can until I land a job.

I am assuming something about the 13 makes the banks not want to do a loan mod.

[tobee43]

we were also contacted by Chase. i worked with the loan mod dept for months upon months to no avail prior to filing.......and after we were discharged Chase calls and asks what was our intention....as they claimed we RE-opened the loan mod...i'm like are you NUTS!!! we live 1800 miles away and over 2 years passing. unreal.

we were a no asset 7. and, the best thing we ever did was give chase back the house.

just another note about HAMP....which was part of the agreement when the banks were baled out...they were suppose to save between 4-5 million homes......just an update. as of today there have only been approx. 550,000 loan mods that have been realized...so the banks took the money with the intention of telling congress they would use those funds to help people save their homes, and now the banks are taking back the homes and still have all the money...only in this world.

[StartinOver]

We were advised to seek our home loan modifications (1 for first, 1 for HELOC) before filing bankruptcy. It took us 3 tries before the bank was able to offer us a modification, and it turns out not to be sufficient to resolve our problems. We are going to surrender the house, and walk away with only student loan debt still sticking to us.

[tobee43]

We were advised to seek our home loan modifications (1 for first, 1 for HELOC) before filing bankruptcy. It took us 3 tries before the bank was able to offer us a modification, and it turns out not to be sufficient to resolve our problems. We are going to surrender the house, and walk away with only student loan debt still sticking to us.

i think you just made a good point. i can't tell you how many stories i have heard of those that FINALLY get some response from the bank on their loan mods, only to find them so unreasonable and unrealistic. terrible...just terrible....like...if you have $1500 mortgage:

we will lower your payment for 6 months by $500, but then we will double the interest and but it on the back end of your loan.

before HAMP, chase said, we will allow you to grace two months but then you have do double up for two months after that?? WHAT????????? i lost my job, you want me to print up the money or what? that sure was sound good help for us.

StartinOver, we surrendered after 33 years, after the first 24 hours past and we left that state....i have no regrets and know it was absolutely the right thing to do. best of luck to you, i know student loans are burdensome.