MHA modification and a possible bk filing...

[Skipper]

Does anyone have experience as to what would occur to the modification process, should a homeowner be forced to file Chapter 13 (or Chapter 7) by an unsecured creditor, while in the "trial payment" period of a MHA modification?

Thanks...

Skipper

[BadBobMo]

If you think about it there is a plan your CC will charge off before you get your Mod. Your 2nd is to be charged off after 6 months of non-payment, but the rules have been revised once again, for the lenders to wait until the 1st mod is completed. Now you have a collections company for your CC knocking on the front door and you’re second calling every day and beating on you back door to get in. This my friends is called leverage, now they have put you in a corner and now you have to lean towards what ever bone they through your way.
So yes BK is our only way out if you have a second, it' also called payback and don't think for one second that they are on your side.
I read on another post that if our second does charge off your loan, that we might be able to go with BK-7 and save about $4,000 to pay our water homes.
It’s all Greed

[hope67]

Originally Posted by Skipper

Does anyone have experience as to what would occur to the modification process, should a homeowner be forced to file Chapter 13 (or Chapter 7) by an unsecured creditor, while in the "trial payment" period of a MHA modification?

Thanks...

Skipper

Hi Skipper, this should answer your question:


If the borrower files for bankruptcy protection during the Trial Period, is the Trial Period Plan canceled automatically or is a servicer required to continue to work with the borrower?
Borrowers who file bankruptcy during the trial period, but who make all of the required payments in a timely fashion and are otherwise in compliance with the Trial Period Plan remain eligible for a modification provided all of the representations in section 1 of the trial plan remain true. The servicer and its bankruptcy counsel must work with the borrower and the borrower's bankruptcy counsel to obtain any required court approvals of the modification. A borrower actively involved in a bankruptcy proceeding prior to being placed in the HAMP is eligible for the HAMP at the Servicer’s discretion. If a servicer provides an offer under the HAMP to a borrower that is involved in an active bankruptcy case, the servicer must work with the borrower or borrower’s counsel to obtain all necessary approvals from the bankruptcy court.

https://www.hmpadmin.com/portal/docs...r/hampfaqs.pdf

[Skipper]

Originally Posted by hope67

Hi Skipper, this should answer your question:


If the borrower files for bankruptcy protection during the Trial Period, is the Trial Period Plan canceled automatically or is a servicer required to continue to work with the borrower?
Borrowers who file bankruptcy during the trial period, but who make all of the required payments in a timely fashion and are otherwise in compliance with the Trial Period Plan remain eligible for a modification provided all of the representations in section 1 of the trial plan remain true. The servicer and its bankruptcy counsel must work with the borrower and the borrower's bankruptcy counsel to obtain any required court approvals of the modification. A borrower actively involved in a bankruptcy proceeding prior to being placed in the HAMP is eligible for the HAMP at the Servicer’s discretion. If a servicer provides an offer under the HAMP to a borrower that is involved in an active bankruptcy case, the servicer must work with the borrower or borrower’s counsel to obtain all necessary approvals from the bankruptcy court.

https://www.hmpadmin.com/portal/docs...r/hampfaqs.pdf

Hope....

Thanks. Better late than never?

For all; has anyone filed 7/13 while in the trial payment program of HAMP?

Skipper