Loan Modification Prior to BK

[strezzed]

My mortgages are up-to-date, but my HOA company wants to foreclose over approx $6K. (HOA fees are secured in my state.)

I am trying to work out a loan modification. Had counseling session with CCCS this morning. And I need to talk to my lender--CitiMortgage.

In my idyllic world, either the holder of my 1st mortgage or 2nd mortgage would increase my loan by $10K or a lesser amount that the HOA would settle for. And then after that I would apply for Ch 7 to get rid of unsecured debt. (I do not have any disposable income and am below median family income.)

Does modification hurt your chances for bankruptcy?

Quick Summary
Unemployed at the moment $1900/month
Mortgage: $75K
2nd Mort: $10K
Leins/Secured Debt: $8K
Homestead Exemption: $60K
Home Value: $155K
Student Loans: $30K
Unsecured Debt: $30K

[SMinGA]

It sounds like you want to get $10k cash out of one of your mortgages to pay the HOA? I don't think mods work like that. They tend to lower APR, put an ARM on a fixed rate, and/or amortize arrears. I don't believe a modification will give you cash to pay the HOA.