Mary Salzer

  

Welcome and thank you for joining the forum....

I am not an attorney.....

With a bankruptcy once you have filed it, the modification process is not possible, therefore you must do the modification prior to the BK or plan on waiting until it is discharged.

It used to be that it was something that the BK attorney and courts could assist with in a Chapter 13, in fact the courts could compel it, now with Chptr 13 the lenders will not proceed with the modification while you are in the Chptr 13, the courts are in charge of your financial life, and they can not alter anything in your financial life without court permission and choose not to, it was made very difficult with the new bankruptcy rules. The courts can not longer compel the modification or reduction of interest rate or payments. So..if you are planning on a Chptr 13 the modification must be done prior to filing. All of the new Bankruptcy rules have caused that little glitch on primary residences.

The problem that you may run into is that you may have to much debt to allow the modification to go through prior to the Chptr 13 as you may be considered to be upside down relative to your income due to the debt load.

With a Chptr 7 and a large amount of debt....then the chances of modification prior the Chptr 7 are again very difficult as again you may not qualify due to your income and expense issues being upside down. After the Chptr 7 then it is not as hard as the consumer debts are discharged and the debt does not weigh down the income, giving you some relief so that you may qualify for the modification.

Please consult with a Bankruptcy Attorney on all decisions regarding Bankruptcy. Just realize that once the BK is filed and until it is discharged you can not achieve modification. Once they are under notice that you are even considering Bankruptcy the lenders will have their guard up in order to protect their position, but as long as you have not filed, they are still able to consider and grant modification.

The second may or may not modify, it is not common for seconds to modify very often.

Litton is tough to modify with...slow and very non-communicative, not real upfront and leave the others on the forum thinking that they are not entirely truthful. If you proceed with the modification before BK be very proactive, determined and focused.

Here are some numbers and access names with e-mails, etc....

Litton Loan Servicing
4828 Loop Central Dr.
Houston, TX 77081
USA -
713-960-9676 (Phone)
713-966-8830 (Fax)

Larry B. Litton Sr. President and CEO

Larry B. Litton Jr. COO