Loan Mod (BoA) after Ch7 Discharge

[may]

We discharged on Ch. 7 in June. DH quit his job for what we thought was a better opportunity. He made more money, but was only there for 5 months before he quit to go back to his old job. The new job was firing people for sales performance and no one was making sales. He was unemployed for 3 weeks before they could take him back - applying for other jobs in the meantime. He went back to his old job and all they could offer him was $8.25/hr with no benefits. Well we weren't making the money and couldn't afford to make our house payment. ($1295/month)

We've been working with BoA since June on a loan mod. After sending the same paperwork 5 million times and having people from 3 different departments call us and request more information, we're now working with one person from the CEO and President's office. All she can tell us is that it's in "underwriting". It's been in underwriting for 2 months at least. We keep getting foreclosure notices, and even received a packet from an attorney's office. When we ask about foreclosure, they just say "no date has been set so you have nothing to worry about".

I love our house and would love to keep it, but I'm really over all this up and down. At what point do you just wave the white flag and give up? Should we call our BK attorney? Can we still put the house in the Ch 7? Do we just foreclose? Are people really getting loan mods from BoA right now?

[may]

And would this be something that we could walk away from? My attorney was talking about doing a Ch. 13 but she's doing some research...

[IamOld]

May if you were discharged in the 7 - you can just walk away (but beware that HOA fee's - if you have any) you'll have to pay likely.

BUT from the mortgage you CAN walk away.

I think you're atty may be thinking of a Ch 13 - if you guys/she can do it so that you can save the house - BUT you still need to be able to make the mort payments plus whatever your Ch 13 payment would be (likely just mort arrears)

I wish you guys all the very best!

[may]

We do not have any HOA fees. At this point, I'm wondering if it's even worth trying to continue with the loan mod.

What are the benefits of walking away vs. foreclosing. Or are they the same thing?

[IamOld]

May I believe that is one and the same - what I don't know- and I'm sure others will answer - is if the foreclosure will be on your credit separately - I do know there is a time period (I believe two to three years) from foreclosure you have to wait to be able to buy again...with an FHA or the such loan.

[LadyInTheRed]

May, there is one important detail we don't have. Did you reaffirm your mortgage in the 7?

Yes, walking away and allowing a foreclosure are the same thing. You can stay in the house and save on rent until they actually foreclose. They eventually foreclose, then you "walk away" with no further obligations, assuming you didn't reaffirm the mortgage.

[IamOld]

Lady in the Red as usual!! is of course quite right.

May, just remember - in VA foreclosures move CAN move fast - 90 days is possible from notice of default...

[may]

No, we did not reaffirm.

[LadyInTheRed]

No, we did not reaffirm.

Excellent! So, you can safely walk way.

It sounds like you are leaning towards walking away, which is a good decision if you can't afford the house on your current income. But, if you are still considering trying to get the modification, you should join the forums at loansafe.org if you aren't already a member. That may be a good place to find out if anybody is getting loan mods from BoA these days. My understanding is that things tend to move along more quickly once the Office of the President gets involved. At least, that was the case a couple of years ago when I first started exploring my options.

[may]

This is just crazy hard. We didn't surrender it because we love it and now I guess we need to just move on.

Thanks for the link! I'm going to definitely check it out.

[nohoneymoney]

Please a few questions.

We discharged on Ch. 7 in June.

Has your BK7 closed as well?

We've been working with BoA since June on a loan mod. After sending the same paperwork 5 million times and having people from 3 different departments call us and request more information, we're now working with one person from the CEO and President's office.

We feel your pain!!! We went around and around with several banks can got nowhere. We are now working with a "professional" from the BK attorney's office to see if he has any luck. He is fast and direct with the banks but it is too soon to tell if he will be of any benefit for us.

Can we still put the house in the Ch 7? Do we just foreclose? Are people really getting loan mods from BoA right now?

I am surprised that you didn't include your house even if you did convert from BK13 to BK7. Did you reaffirm the mortgage? I am not sure how a major asset can be left out. Please check to be sure it was not discharged with your BK7.

[btbeme]

May, I have a story to tell about B of A and a loan mod. Give me a day to gather it all together and write it up - I'll post here when I can (2 sick kids tonight...yuck).

But, I can tell you that we had a tough case and were able to get a post-Ch 7 modification on a second home through B of A that made us very happy. Details to come.

[may]

Please a few questions.

Has your BK7 closed as well?

We feel your pain!!! We went around and around with several banks can got nowhere. We are now working with a "professional" from the BK attorney's office to see if he has any luck. He is fast and direct with the banks but it is too soon to tell if he will be of any benefit for us.

I am surprised that you didn't include your house even if you did convert from BK13 to BK7. Did you reaffirm the mortgage? I am not sure how a major asset can be left out. Please check to be sure it was not discharged with your BK7.

You know...that's where it gets gray for me. When we had our meeting of the creditors they asked if we were keeping our house and continuing to pay the payments. We told them yes. However, when we bought DH's truck our house didn't show up on our credit report.

I know we did not reaffirm.

How do I know if the 7 is closed?

[2manybills]

You know...that's where it gets gray for me. When we had our meeting of the creditors they asked if we were keeping our house and continuing to pay the payments. We told them yes. However, when we bought DH's truck our house didn't show up on our credit report.

I know we did not reaffirm.

How do I know if the 7 is closed?

I would bet that your house was included in your BK. Any and all debts are required to be listed, and most attorneys I have run into do not suggest reaffirming your mortgage. But I have heard of people doing a loan mod once their BK is closed. Remember, a loan mod only modifies the terms of the original loan and does not "reaffirm" the mortgage.

BofA has been one of the toughest as far as loan mods from what I hear. Try loansafe.org as Lady In Red suggested, there are so many people on there that share their issues and successes. They also list contact phone numbers and emails for management.

[btbeme]

Remember, a loan mod only modifies the terms of the original loan and does not "reaffirm" the mortgage.

That depends on the situation. But, it can often be negotiated as such. For instance, a federal HAMP loan re-saddles you, unless YOU insert the proper language into the Agreement, and YOU are responsible for making sure it happens.