Loan Mod and Bankruptcy - Loan Modification Forum

dozendogs · 06-01-2009, 12:11 AM

I am current on my first mortgage (CW) Have not paid my 2nd since Jan. It looks like I will be filing chapter 11 to restructure my debts next month. I have unsecured debt also.

My first mortgage is a 5yr NegAm Arm that resets next May. Without a mod I will not be able to afford the home.

Is it better to seek the modification now or wait? Also, if I wait and I am not successful and then go into foreclosure, what happens with the deficiency? My home is only worth about half of what I paid for it.

Marshall Rosenbach Esq. · 06-06-2009, 12:33 PM

I would try to seek the modification before the bankruptcy. Some lenders require your bankruptcy to be discharged before they will work with you. Others require a letter from your bankruptcy lawyer that loan workout discussions can proceed.

06-01-2009, 12:11 AM	#1 (permalink)
dozendogs Junior Member Join Date: Jan 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Loan Mod and Bankruptcy I am current on my first mortgage (CW) Have not paid my 2nd since Jan. It looks like I will be filing chapter 11 to restructure my debts next month. I have unsecured debt also. My first mortgage is a 5yr NegAm Arm that resets next May. Without a mod I will not be able to afford the home. Is it better to seek the modification now or wait? Also, if I wait and I am not successful and then go into foreclosure, what happens with the deficiency? My home is only worth about half of what I paid for it.

06-06-2009, 12:33 PM	#2 (permalink)
Marshall Rosenbach Esq. Real Estate & Mortgage Law Attorney Join Date: Jan 2008 Posts: 88 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Mod and Bankruptcy I would try to seek the modification before the bankruptcy. Some lenders require your bankruptcy to be discharged before they will work with you. Others require a letter from your bankruptcy lawyer that loan workout discussions can proceed. __________________ Law Offices of Marshall E. Rosenbach Please call me anytime at (561) 627-8990 www.FloridaLoanLaw.com The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Licensed to practice law in the states of California & Florida.

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