Question Modification Proposal via Wells Fargo

[BigDogg]

Hey all;
A little background, I filled Chapter 13 3 years ago at the time was employed and making decent money. I could afford a Chapter 13 payment, it started at 420, the was raised to 520 then to 580. I within the last year have been get this temporarly laid off. I cant afford the 580 so I started trying to get a Modification, and Wells called and offered me a proposal which is a step modification. All is well however to get the real papers the court needs to agree with the mod is this true???

I have as recent as last Friday converted to Chapter 7, and my lawyer told me and them that nothing needs to be approved by the courts in the 7 we should be good to go. However Wells is still wanting court approval???

[AngelinaCat]

You need to talk to you BK attorney about this specific matter. It sounds like this crediter my be trying to do a 'side-deal' around your now Ch7.

Our inept attorney stressed to us that we, under NO circumstances WHATEVER, were to enter into any kind of a 'side agreement' with any creditor apart from the BK, otherwise the BK would become be 'blown out of the water', and you 'run the risk of being dismissed, and never being able to file BK on the creditors listed in your original petition. EVER'.

That is what we were told and I cannot stress it enough: TALK TO YOUR ATTORNEY!!!

AND!! If he/she is a non-talker, as ours was, GO CAMP IN THE OFFICE.

IT IS THAT SERIOUS!!!

[justbroke]

Technically, the Bank, Wells, would need limited relief from the automatic stay so that they can record the modification in the public record. This is why the court gets involved. Sometimes the bank will proceed with just a letter from your attorney indicating that they can proceed with modification. My lender sent me a letter, as I'm the attorney of record (pro se), and I signed and returned it. It just indicated that they were allowed to "talk" to me during the automatic stay.

The automatic stay is there to protect you and the bankruptcy estate. I would be really upset, and so would the court, if the bank was trying a "back door" reaffirmation.

So, now that you're in a Chapter 7... are you surrendering, reaffirming, redeeming or riding through?

[hopefullori]

Hi - my chapter 13 was converted to a 7 in December - had my 341 in January and set to discharge 3/29 - I, like you, am in the process of a Wells Fargo Mod and in the paperwork, they want court approval as well.

I did talk to the loan negotiator and she said that when the case closed (discharged) they could proceed with modification - which in my case is about 4 weeks away. If I want to, I can ask my attorney to file a motion to modify - but that would involve more paperwork, etc. I see the point, but it took me so long to get the paperwork from Wells Fargo -

I'll keep you posted as to my progress here - but was so relieved to get a modification -

BTW - my attorney was great - she emailed and faxed the negotiator her "approval" to proceed and so far has not sent me a bill for that

[BigDogg]

Technically, the Bank, Wells, would need limited relief from the automatic stay so that they can record the modification in the public record. This is why the court gets involved. Sometimes the bank will proceed with just a letter from your attorney indicating that they can proceed with modification. My lender sent me a letter, as I'm the attorney of record (pro se), and I signed and returned it. It just indicated that they were allowed to "talk" to me during the automatic stay.

The automatic stay is there to protect you and the bankruptcy estate. I would be really upset, and so would the court, if the bank was trying a "back door" reaffirmation.

So, now that you're in a Chapter 7... are you surrendering, reaffirming, redeeming or riding through?

So, now that you're in a Chapter 7... are you surrendering, reaffirming, redeeming or riding through?

I am unsure, what any of that means, I am doing a loan mod to keep if all goes well.