Help! Regarding Loan Mod and BK.. ANY PLEASE!!!

[oc714]

I'm in the process of filing BK and I just received a call from BoA that I was approved for in house loan mod bringing my payment down from $2294 to $1869 for 3 months and then it goes permanent. If I file Bk will I need to start this process over or will they honor it? If anyone has experience please let me know, should I hold of on filing BK.

Thank you!

[sixxlondon]

I got approved for a loan mod through boa a few months ago. I am going to file on May 1st and I mentioned that to my attorney if I was going to lose my loan mod and he said no. I would double check with your attorney though since you will be going through trial payments until it goes permanent. Mine is already permanent.

[jennhalcyon]

OC, congrats but be very cautious about celebrating on the loan mod just yet. There are so many things that can happen between now and final approval/permanent mod. Have you run through your B22 and Schedule J with the modified payment amount to see how you fare?

[oc714]

Well according to the lawyer he needs to put the total amount due each month of $2294 since the loan mod is not permanent no other option.

Plus we are negative each month even if we put the modified amount.

[espo1357]

I'm in the process of filing BK and I just received a call from BoA that I was approved for in house loan mod bringing my payment down from $2294 to $1869 for 3 months and then it goes permanent. If I file Bk will I need to start this process over or will they honor it? If anyone has experience please let me know, should I hold of on filing BK.

Thank you!

OC, are you filing a 7 or a 13?

Don't let the modification push you into a 13. That is what happened to me. BEFORE my loan modification, I qualifed for a chapter 7, but AFTER the modification, I could only qualify for the 13.

At the time I wanted to keep the home (big mistake, as the housing market continues to tank and the home is still underwater).

So, be sure you want the home before you move forward with the loan modification.

Also, get into the chapter 7 if you can. If you don't have a second mortgage, then the 7 is the way to go. Even if you have a second, you can it off for 5-10 percent.

The 13 is a pain in neck!

[octoblonde]

oc714, I'm no expert on loan mods, but can you delaying filing until the mod is permanent and then do a ride through or reaffirm if that makes sense for you? I thought I had read something about someone on the forum here who said they wished they would have waited till the loan mod was permanent before filing.

[Chowder]

Well according to the lawyer he needs to put the total amount due each month of $2294 since the loan mod is not permanent no other option.

Plus we are negative each month even if we put the modified amount.

I'm guessing you refer to negative from the BK perspective, not by the mod. Anyway. Shouldn't much matter for an in-house whether it happens before, after or concurrently with your BK. Good luck with all of it.

[nodebtnomore]

I'm in the process of filing BK and I just received a call from BoA that I was approved for in house loan mod bringing my payment down from $2294 to $1869 for 3 months and then it goes permanent. If I file Bk will I need to start this process over or will they honor it? If anyone has experience please let me know, should I hold of on filing BK.

Thank you!

Don't count on it being permanent....

[oc714]

OC, are you filing a 7 or a 13?

Don't let the modification push you into a 13. That is what happened to me. BEFORE my loan modification, I qualifed for a chapter 7, but AFTER the modification, I could only qualify for the 13.

At the time I wanted to keep the home (big mistake, as the housing market continues to tank and the home is still underwater).

So, be sure you want the home before you move forward with the loan modification.

Also, get into the chapter 7 if you can. If you don't have a second mortgage, then the 7 is the way to go. Even if you have a second, you can it off for 5-10 percent.

The 13 is a pain in neck!

We are filing a chapter 7. We do have a 2nd but we are not able to strip it in a chapter 13. We owe 312K in 1st mortgage and 85K on the 2nd house is worth 350-370K.

[Peeps]

Congrats on the mod... hopefully it helps you with your new start!

It seems like trustees are very fond of reviewing bank statements. You might have some trouble explaining why your BK paperwork says $2294 and your bank statement shows $1869 for your mortgage payments. If the trustee believes your payments could stay at $1869, then your DMI will be much more favorable than stated in your paperwork. That could get you into some trouble. There's a place on Schedule J where you can write in possible changes to your projected costs. Be safe and at least flag the issue there. And to be even more safe, make sure your DMI isn't over the threshold for a Ch 13 using the $1869 figure for your mortgage payment. Best of luck to you and congrats again on the mod.

[Chowder]

You might have some trouble explaining why your BK paperwork says $2294 and your bank statement shows $1869...

You must have missed this.....

...we are negative each month even if we put the modified ($1869) amount.

[Peeps]

No, I didn't miss it, but thanks for your lightning-quick rush to assume so.

Is it so wrong to offer a perspective? Isn't that why we're all here?

"Negative each month" can mean a lot of things. My point was that the trustee will likely question the discrepancy and there should be some attention specifically to DMI using the lower payment. Maybe that's what the OP meant by "negative each month," but assuming so would be imprudent.

[GWBcasualty]

We are filing a chapter 7. We do have a 2nd but we are not able to strip it in a chapter 13. We owe 312K in 1st mortgage and 85K on the 2nd house is worth 350-370K.

May I ask if your loan mod is merging the 1st and 2nd?

I am in a similar situation although with higher loan&home values, I have both 1st and 2nd with BofA and will be skipping payments this month for the first time to see what we can get...

[oc714]

Congrats on the mod... hopefully it helps you with your new start!

It seems like trustees are very fond of reviewing bank statements. You might have some trouble explaining why your BK paperwork says $2294 and your bank statement shows $1869 for your mortgage payments. If the trustee believes your payments could stay at $1869, then your DMI will be much more favorable than stated in your paperwork. That could get you into some trouble. There's a place on Schedule J where you can write in possible changes to your projected costs. Be safe and at least flag the issue there. And to be even more safe, make sure your DMI isn't over the threshold for a Ch 13 using the $1869 figure for your mortgage payment. Best of luck to you and congrats again on the mod.

I'm still paying $2294 this will take in affect on May 1st.

[oc714]

May I ask if your loan mod is merging the 1st and 2nd?

I am in a similar situation although with higher loan&home values, I have both 1st and 2nd with BofA and will be skipping payments this month for the first time to see what we can get...

This is only on the first mortgage the 2nd is not willing to help us. Wells Fargo has been a pain.