Are the laws changing for mortgage modification?

[Jf24]

Discharged ch 7 two years ago. Did not reaffirm mortgage. Just got mod paperwork and atty said there is a grey area. Said even though original debt was discharged, if I agree to mod it may create a new note and will be liable if I walk away in the future. Said judges in our area haven't decided on which way the law is going but I'm taking a risk by signing the mortgage mod.

Nothing in the agreement says that this mod does not change the original note.

[LadyInTheRed]

That isn't consistent with my understanding, but I am not a lawyer. I suggest you get a second opinion from another New York attorney, maybe from the guy who wrote this article: http://www.midhudsonbankruptcylawyer...er-bankruptcy/. If your attorney says the law is unsettled, you should not take action based on conflicting information you receive from anybody other than a New York attorney.

[Jf24]

Regardless of what the mod will bring, we are now thinking of walking away. Bought house very high at height of the bubble, sky high taxes, $30000 under water. We were even considering moving down south to escape this all and this might be our ticket out of the house.

Made our trial payments but don't seem reasonable to give them any more at this point.

Just wondering our timeline now. First notice was mid last year. Does the mod process stall the FC process?

[justbroke]

There is no phantom (back-door) reaffirmation. The problem would be if you actually signed documents that were a refinance of the current debt. A modification is not a refinance. I would have my attorney inspect any modification documents to make sure they are not a "novation" of the debt. (My modification was ONE page and included a line that the original discharged debt remained discharged.)

[Jf24]

Mine is 4 pages, does not say anything like you mention and the first sentence says " congratulations, you are eligible for a loan modification, which will permanently change the terms of your mortgage."

I am not signing this.

[LadyInTheRed]

Permanently changing the terms of your mortgage is by definition what a modification is. That doesn't mean it puts you back on the hook for discharged debt.

[Jf24]

Other wording

This loan modification made between ***** and **** amends and supplements (1) the mortgage, deed of trust, or security deed dated **** And recorded ***** and (2) note bearing the same.....

Nothing states about the original discharged debt.

[justbroke]

You have an attorney, so I would run this by the attorney. My personal opinion is that the text you write above, would define it as a modification of an existing debt since it references (by date and/or account numbers or recorded document number or page/book) something very specific.

When I wrote that my modification was one page, I meant that the portion which was recordable, was only one page. I did have a "cover" letter started with "Congratulations..." as well.