chapter 7 and mortg modifacation

[imdk2005]

I have a general question that I hope someone can help with.

I am in the process of filling for chapter 7 for un secure debt CC's only.. But I paln on keeping my home which has no equity and owe more than what it's worth by about 20,000. has anyone tried applying for a mortgage modifacation at the same time of filling a chapter 7? or should I wait until the chsapter 7 is done than try for the modifacation? Thanks in advance for any help anyone has to share.

[SMinGA]

Depending on what you accomplish in the modification, it could mean trouble for filing ch. 7.

Some modifications lower the rate and result in a lower payment. If your payment goes down, do you have DMI that might result in a ch. 13? On the other hand, if you are behind now, modifying can amortize your arrears while filing ch. 7 with past due mortgage could be a problem.

[imdk2005]

Sounds like I should wait until after I file which is the end of May , I am not behind it's just I lost my job and the payments are too high for what I am getting for unemployment. even if I get the discharge for chapter 7 - Do you know if I have to wait until discharge or can I start inquiring after the 341 meeting? I am new to this and do not get all the stright answers I would like from my lawyer, probable because he has not been paid in full yet.. thanks.

[SMinGA]

I think its fine to start talking to them after you file, though they may be limited in what they can discuss at that point due to the automatic stay. It may just be a situation of getting to the right department though?

You may be able to do a little research thru your mortgage co's website, or about the federal program if you think you may qualify. I've vaguely heard they (not sure though if it was my lender or federal) would soon have programs for unemployment income. I did not pay it alot of attention as it did not apply to us.

[imdk2005]

Much thanks SMinGA, this has all been very helpfull.

[blessed]

My bk attorney does loan modifications also. Press the issue and find out if yours does too.

[imdk2005]

My home is not going to be included in the chapter 7 - I am up to date on payments and plan on keeping it. as SMinGA stated if the payment go's down it coiuld affect the chapter 7 outcome. I can still make the payments it's just it does not leave much for anything else, so trying to get the payments lower after bankruptcy is probale the best way to go for now. But thanks much for the suggestion.