CHP 7 & potential LOAN MOD with Chase?

[Redwing]

• Downsized 01/09, unemployed since then with unemployment as our only source of income
• Stopped making payments on home 02/09, and home is in foreclosure;...but with no Sheriff Sale date yet
• Filed CHP 7 last month (No asset, wasn't planning on keeping home when filed)
• 341 Meeting with Trustee on 10/15
• Home worth $175K
• 1st with Chase for $170K, and 2nd with National City for $40K
• Unexpectatedly (Praise God!) just received a job offer for $90K, with a start date of 10/05
• Here's my question(s):

1. If we decide to keep the home, will I open a "can-of-worms" if I decide to negotiate a "Loan Mod" with Chase?
2. Should I wait until 60-days after my 341 meeting, and I'm completely discharged?

Thanks in advance for your help & suggestions!

[kenman]

Did you file pro se?

Has Chase filed for a Motion to Lift the Stay which was created when you filed CH-7?

I did exactly the same thing you did and am now ready to make my 3rd trial mod payment.

I don't think you are necessarily creating a can of worms but depending on your circumstances, there are some issues you will want to be aware of.

If Chase did not file a motion to lift the stay, you might get by with a ridethrough, however that is hightly unlikely.

Kenman

[Redwing]

Kenman (or whomever)

1.) I do have a lawyer I used for the CHP 7
2.) Chase did file a "Motion to Lift Stay" (Sept 1st), but no updates yet?
3.) Should I wait until after my 341 meeting on 10/15, and let Chase know I now have a job that can handle the payments?
4.) What kind of "Loan Mod" terms did you get from Chase? Is there a possibility of a priciple reduction?

Thanks in advance for your help!

[kenman]

Redwing

I am in the "trial period". My bankruptcy has been closed and I am now discharged.

Chase had me start all over when I filed C-7. Then I had to start all over again when they filed to lift the stay.

Then I had to start all over again after the discharge.

I started this process in Feb 09 with Chase.

I make my last payment on the trial plan on 9-30. After that, I am suppose to hear about the trial mod.

After I filed C-7, I had to work with the Bankruptcy Department to obtain a workout/loan mod.

So far it has been worth all the trouble. My payments dropped almost 1000.00 per month.

We will see what happens this next month.

Good luck

Kenman

[Redwing]

KENMAN......That's awesome, and thanks for the feedback!

We're still undecided if we want to keep the home, but I plan on calling them to hear my options, and what their offer is.

Would you mind sharing a little more about your "Loan Mod", and what the terms are? You mentioned that you're saving $1,000 per month on your payment. What are the terms of your loan? Interest rate? Length of loan? What type of loan? Did you try and get a principle reduction? Did they put all your past payments in the back of the loan?

I think your answers will help all of us that are just starting the negotiations, and to compare notes with you on what terms they are offering.

Thanks again in advance for your help!

[Marie T]

just a thought ...if you only owe $210,000 on house and your income will be $90,000....why would they do a mod for you? isn't your payment going to be affordable now?

[Redwing]

I've been on unemployment since Jan/09, and I haven't made a payment since Feb/09. I have no savings, and can't come-up with the past payments, so the only way I can stay in the home is for Chase to allow a work out program/Loan Mod. Yes, I can now make the normal monthly payment if they'll work with me.

[PCBFL]

Kenman-Did you reaffirm your loan in the bankruptcy?

We initially said we would and then did not because Wachovia said they would not modify while in BK. We tried before the Bk and our debt to income ratio was too high. They told me to contact them after we filed the BK and they would help. Then after we filed I called and they told me I had to reaffirm, be discharged and then they could see about a modification after the BK. They said it was "company policy" not to modify or even process a modification application if in active Bankruptcy. We were just dicharged and I am about to send in the package to see if we can get help now that most of my debts are gone. We are underwater about 180K so we have decided unless they help on principal and rate we will not stay. Would love to stay but we know we only have 4 more years here and are values are still going down so we would be stuck down the road. My understanding is if you execute new loan docs you are no longer protected under the BK. Is that your understanding also?

[kenman]

Redwing & Others

1. Yes, we reaffirmed our loan in C-7. We wanted to keep the house due to our ages. I am 62 and my wife is also 62. Yes, we will be responsible for the loan. We also reaffirmed our HELOC.
2. We live in Washington State and have NOT seen the decrease in housing values other areas have experienced. In fact our house is worth about 150,000 more than when we purchased it 8 years ago.
3. The BK court sent an appraiser out to appraise the house. Washington has a 125,000 homestead exemption we were able to use, otherwise we would have lost the house.
4.Our loan is serviced by Chase but owned by Freddie Mac
5.I have not worked since Oct 08. At my age find work is rather difficult to say the least.
6. Chase offered us a 2% reduction in the interest rate. Now at 4.5% and extended the loan to 40 years. In our case, this was just fine. We have only had the house for 8 years
7. Our payments including PTI went from $1856.00 per month to $1181. In our area, we can't rent for that amount.
8. Now, we have been on the "trial plan" for 3 months. Just made my last payment.
9. My concern is that Freddie Mac will decide that with quite a bit of equit, it might be better to foreclose and get rid of the liability.

While everything sounds good at this point, I am very concerned about what may happen in the next 30 days.

Like I said in an earlier post, I have been going thru this since Feb 09. I am not so naive to believe I have "arrived".

Hope this answers the questions to you have.

Kenman