Bankruptcy and CW, loan modification possible? - Loan Modification Forum

robijamie · #1 (**permalink**) IP: 70.56.148.13 11-06-2008, 04:39 PM

We have a 6.875% FHA loan through Countrywide. Our payments including taxes, and insurance are $2,207.00. Our net income is $5,600. We are currently 3 weeks away from filing bankruptcy CH 7. We obviously have the option of walking away from our house and having the debt discharged. We really don't want to do this though. We called CW a few weeks ago and were directed to the bankruptcy department. We were told to provide 2 paystubs, monthly expenses, letter of hardship, and 2 bank statements and a letter from our attorney. We haven't faxed our stuff in yet because we are waiting on our attorney. I'm currently wondering if I should just fax what we have in asap.

Anyway, we are current on our mortgage (except for a few late payment penalties). It would help us more financially to totally walk away from the home, but the security and sentimentality of the home is high (dh built the home himself). We are not sure we would even qualify for anything because we have a fixed rate. Today, I just thought I would call CW for the heck of it, so I did. I went to the bk department again, and one agent told me that he was sending me back over to the "Home Retention team" and to NOT mention bankruptcy or we would end back in the bk dept. So I spoke with another lady and she went through all our income and expenses over the phone. Based on this, she said we "qualify" for a 3 month forebearance. We wouldn't have to pay for 3 months and then it would all be due. That sounds scary! Anyway, I told her no thanks. She said that I should call the hud # and see what we could qualify for starting Dec 1st. Should I even bother? Also, I'm wondering if I should still just fax what info. we were told to in and see if they come up with any solutions for us.

Anyone have any insight? THank you!!!

Cat Damiano · #2 (**permalink**) IP: 67.177.243.104 11-06-2008, 05:10 PM

Hi robijamie,

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

When you file a Chapter 7 BK you would need to wait until it is fully discharged to be able to do any type of workout. With FHA as the investor you would need to call HUD and speak to a counselor to see what options you have.........since you are current, they might offer the forbearance again.

Call 1 (800) 225-5342 to see what options FHA can offer you.

robijamie · #3 (**permalink**) IP: 70.56.148.13 11-06-2008, 05:53 PM

So should I wait until the bk is fully discharged? Or call FHA now?

And why would CW tell us a few weeks ago to fax some info in?

Cat Damiano · #4 (**permalink**) IP: 67.177.243.104 11-06-2008, 06:20 PM

If you are already filing the BK you would have to wait because the second that the BK is filed, CW will be notified and your file will be marked BK and they will not be able to talk with you about any workouts..........
if you are not filing right away then try calling FHA and see what options they have...........

robijamie · #5 (**permalink**) IP: 70.56.148.13 11-06-2008, 07:57 PM

Well we will be filing around the 20th of November. So maybe I have no options?

Cat Damiano · #6 (**permalink**) IP: 67.177.243.104 11-06-2008, 08:46 PM

Just call FHA to see and don't mention the BK yet.............see what they say.

robijamie · #7 (**permalink**) IP: 71.36.8.194 12-11-2008, 04:52 PM

Okay so we filed bk on Dec 4th. My husbands pay was reduced almost 20 % 2 weeks ago. We want to keep the home but with the way things are we don't think we can afford it. We are current today, but we seriously can't continue this way. What should we do?
Also, if we fall behind in payments, will they look at us differently? Dh's pay is $5250 gross and our payment with taxes, ins, is $2,200.00. And lastly, once you resign a loan modification, would it legally tie us to the home for a deficiency balance if we foreclosed down the road. Thanks!

Cat Damiano · #8 (**permalink**) IP: 67.177.243.104 12-11-2008, 05:04 PM

If you filed the Chapter 7 BK............you will need to wait until it is discharged to do a modification. As far as a deficiency question.......you may want to ask that of your attorney since they may be able to help with the laws of your state........

robijamie · #9 (**permalink**) IP: 71.36.8.194 12-11-2008, 07:48 PM

Any ideas about making payments while in bankruptcy? Also, if I call, will they talk to me? Thanks so much.

Cat Damiano · 12-11-2008, 08:38 PM

The will most likely route you to the BK dept..........but you can try.........and the BK dept. is who you would need to ask the question about payments to........they may have a system in place to accept payments......such as wire transfer...........or you may have to send them to a specific place...............I am not sure if you would just be able to mail them or pay online like you normally would.