Question can filing chapter 7 throw out my loan modification?

[zvonimirg]

I successfully got Citimortgage to do a loan modification for me. It saved me from losing my house. My payment went from 2200 to 1600. It was made permanent in Feb 2010.

I have been saving up for a chapter 7 - lawyer wants $2500 to file.

I have it now and was about to file. But....while the lawyer says I qualify, also he says that he can't guarantee the mortgage company won't throw out my loan modification. He says it's a 'risk'.

He says the risk is that if they throw it out, I'd be forced into a 13 and would have to repay citimortgage the amount I was behind when they did the loan mod. I am concerned about that but I'm not sure the lawyer is correct.

Seems to me once it's final it's final. But I can't find the concrete answer anywhere.

Has anyone successfully filed chapter 7 after the loan mod was already done and finalized ?

Thanks

[tobee43]

yes, i do know people that have...but they ended up surrendering the house. so i don't know what or how the bank would react after the modification was completed.

[HHM]

Generally speaking, if you have a "permanent" modification, the bank will not throw out your modification.

Before the June 1st, 2010 guideline update from HAMP, it was best strategy to have the modification finalized before filing.

[zvonimirg]

Do you know of a way to find out for sure?

Have the HAMP best practices changed for the better or worse?

I don't want to file if it's going to mean losing the loan mod. If I lose the loan mod, I can't afford the house, so I'd have to surrender it at that point.

Thanks so much for the advice.

[tobee43]

zvonimirg...i don't type this lightly...but HHM...is really one of the only sources, although somewhat harsh, (LOL...but says it like it is, usually whether one likes it or not!) that i would trust. i know one is not to take legal advise from anyone here, however, i would trust the comment to be as close to true as one can expect.

if you do not feel comfortable with that response...do some research...and call an attorney, just to make youself feel better.

[zvonimirg]

Tobee43 -thanks.

I'm new to the forum so please don't think i'm disrespectful to HHM, or that I question the advice;

I'm just scared to pull the trigger if there is a chance they could throw out my loan mod.

If it's a small chance maybe I just need to trust the universe and do it.

ugh!

[LadyInTheRed]

Have you read carefully through all of the documentation of your loan modification? If they could cancel it for any reason, I would think the reasons would be listed in the agreement.

[zvonimirg]

One of the things it specifies is that once it's permanent, it can't be changed again.

There is nothing listed as reasons for them being able to cancel it. Basically it's very short and states that everything stays the same on the loan agreement except what the loan mod changes - which is that the amount past due is added to the balance, the loan is brought current and new interest rate/payment.

I was fairly certain I was ok and stuff I'm hearing on this thread makes me feel confident but I don't know why my lawyer told me there is a 'risk'.

[ccsjoe]

Check and see if maybe your original agreement, at least the parts not modified, contain any language anywhere that could impose a risk. Or ask the attorney. If you're anything like me, you're pouring over the docs to find out for yourself.

[missjean]

We modified our home loan with Chase; it became permanent in January of 2010. When we filed for Chapter 7 in July Chase sent us a Reaffirmation Agreement that showed the same terms as our Loan Modification Agreement. (They did, however, make errors in the first one that was sent; they even spelled my name incorrectly!!). They corrected the Reaffirmation, sent it back to us for signing, and filed it with the court. (We have a Reaffirmation Hearing on 9/23/10). Nothing changed after we filed; we still have the payment automatically debited from our checking account by Chase.
Hopefully your bank will do the same!

[tobee43]

zvonimirg, i so hear you! it's really difficult making the what one thinks is the "right" decision during these times.

i still think it best for you to have your attorney examine the mortgage instrument....as many are not trained to find the nooks and crannies the banks have a tendency to add or omit in these documents.

it's best to be certain before you sign on the dotted line..