Loan Modification after Chapter 7 Discharge - Loan Modification Forum

rollercoaster · 04-24-2009, 08:16 AM

My Ch. 7 Bankruptcy was final last October. I did not reaffirm my mortgages. I had a 1st mortgage with CW and a 2nd with Citibank. I'm still living in my house, but haven't made a payment since last summer. My house is in the early stages of foreclosure.

I didn't reaffirm when I filed Ch. 7 because I had no idea what my financial situation might become. After working diligently, in January, I was able to land a great job that is secure and pays me quite well. With a loan modification, I could likely afford my house again. I called CW and they told me to right the letter, and fax it with pay stubs, bank statements, etc.

But, I have a few questions I'm hoping some of you might be able to help me with.

So, right now, I have no claim to this property or debt. Can CW do a loan modification with me? Or is what they'll do a reaffirmation of the previous loan? If I go that route, will I be able to build equity in the house again? Will I be able to sell it? What about the 2nd mortgage with Citibank?

Thanks for your help and this forum!!!

buzzpat · 04-24-2009, 09:52 AM

Hi rollercoaster,

We're in a similar situation in SoCal. Our chapter 7 was discharged in August of last year. We have been in constant contact with CW and have been told that we could, indeed, "reaffirm" the mortgage and renegotiate terms. Our bk attorney agrees. Now, that being said, CW has quit answering our calls, letters and e-mails. Probably because of the BOA acquisition. We decided to quit waiting for them and have recently gone through NACA. No word yet other than NACA is now working with CW on our package. So, again, we're waiting. But short answer to your questions: yes. You can reaffirm the mortgage and work out a new agreement as long as CW / NACA can work something out. Good luck and God bless!

rollercoaster · 04-25-2009, 04:13 AM

Hello Buzzpat,

Thank you for your response. It gave me great insight. So stressful!

God bless you as well.

ItsJustMe · 05-05-2009, 08:52 PM

Hmm. Interesting. I have a feeling we will be in a similar situation this winter. Please keep us updated!

04-24-2009, 08:16 AM	#1 (permalink)
rollercoaster Junior Member Join Date: Apr 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Loan Modification after Chapter 7 Discharge My Ch. 7 Bankruptcy was final last October. I did not reaffirm my mortgages. I had a 1st mortgage with CW and a 2nd with Citibank. I'm still living in my house, but haven't made a payment since last summer. My house is in the early stages of foreclosure. I didn't reaffirm when I filed Ch. 7 because I had no idea what my financial situation might become. After working diligently, in January, I was able to land a great job that is secure and pays me quite well. With a loan modification, I could likely afford my house again. I called CW and they told me to right the letter, and fax it with pay stubs, bank statements, etc. But, I have a few questions I'm hoping some of you might be able to help me with. So, right now, I have no claim to this property or debt. Can CW do a loan modification with me? Or is what they'll do a reaffirmation of the previous loan? If I go that route, will I be able to build equity in the house again? Will I be able to sell it? What about the 2nd mortgage with Citibank? Thanks for your help and this forum!!!

04-24-2009, 09:52 AM	#2 (permalink)
buzzpat Member Join Date: Jul 2008 Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Modification after Chapter 7 Discharge Hi rollercoaster, We're in a similar situation in SoCal. Our chapter 7 was discharged in August of last year. We have been in constant contact with CW and have been told that we could, indeed, "reaffirm" the mortgage and renegotiate terms. Our bk attorney agrees. Now, that being said, CW has quit answering our calls, letters and e-mails. Probably because of the BOA acquisition. We decided to quit waiting for them and have recently gone through NACA. No word yet other than NACA is now working with CW on our package. So, again, we're waiting. But short answer to your questions: yes. You can reaffirm the mortgage and work out a new agreement as long as CW / NACA can work something out. Good luck and God bless!

04-25-2009, 04:13 AM	#3 (permalink)
rollercoaster Junior Member Join Date: Apr 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Modification after Chapter 7 Discharge Hello Buzzpat, Thank you for your response. It gave me great insight. So stressful! God bless you as well.

05-05-2009, 08:52 PM	#4 (permalink)
ItsJustMe Senior Member Join Date: Apr 2009 Posts: 217 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Modification after Chapter 7 Discharge Hmm. Interesting. I have a feeling we will be in a similar situation this winter. Please keep us updated!

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