In middle of bk and loan mod

[desertgrl74]

I received my loan modification papers and realized that my payment will be late and I called them about it. They said they can't do anything and told me to send it asap. Well, so far I am about 6 months behind. I am sending out the payment in two weeks. I also just filed chapter 7 and my meeting is Oct. 5th. Will my late payments and my first (LATE) loan mod payment affect me at all (foreclosure)? My bk is to discharge cc bills. I'm trying to keep my place. What should I expect?


Wondering if I just screwed myself? Initially when I met my atty, I was current with my payments. When I went for the first counseling session I was 1 month behind and encouraged me to refi or do loan mod. After I paid my fees to the atty and had my signing appt, I asked one of the staff my situation and she said I should be fine. I think she's wrong. Now, it's too late to even consider chp 13. Maybe not, I don't know. But, I will be charged $250 if I cancel or reschedule. Now, I'm freaking out!!!!!!!!!!!!!!!!!!!!! What do I do now? Call my atty and see what he says?

[Dizzy]

My understanding (from many here and also every attorney I went to see) is that most, if not all, mortgage companies will not honor the loan mod once you file your CH7. I think they want you to surrender the house once you file unless you are current. I had sent for paperwork from Chase and it stated in the paperwork that even if approved, it would become null and void in case of a BK. That's what have been great for me, to do a mod and a CH7, but when we realized it wouldn't work and we also couldn't afford a CH13 payment because you have to pay all your creditors and the back mortgage payments, we have decided to file a 7 and surrender the house. We've been living mortgage payment free for four months now (still haven't had any correspondence about foreclosure from Chase as of now) and have saved enough to move into a rental before we file. Maybe you could do something like that. If you're really wanting to keep the house, I'd go ahead and convert to a 13 now and pay the fee because I don't think they will honor your loan mod once they are aware of the Ch7. I also wouldn't pay anything else to your mortgage company until the CH13 trustee tells you to.

[desertgrl74]

Thanks for the response. I won't be able to do a chapter 13. I won't be able to pay my creditors and pay the outstanding balance for the mortgage. I think i'm just going to save what I can until it goes in to foreclosure. Thanks for the advice!

[123ABC]

I am currently in ch 7. just had my 341 today. I am working on a loan mod with my bank also. Actually until I filed they were just telling me they were looking at it but nothing was happening. A week after I filed i got the official packet in the mail.

Unfortunatly at this point the only one that can answer your question is your bank. The rule USED to be that you had to be current when you filed or you would not be able to keep the house. That is no longer true. Now it is all about what your bank wants to do. Talk with them and see what they say.

[relief13035]

I think all lenders must be different. We have CitiMortgage and they wouldn't do our loan modification until we had our discharge papers. Once I had that, the loan mod. went right through.