After many sleepless nights and constant paper work my family and I were finally offered the Shared Appreciation Modification (SAM) from Ocwen in 12/2011. My lawyer reviewed the deal and said it was golden, so we ahead and sign the papers and have been paying accordingly ever since. We only had a two month trial period (January and February) and we just recently made our June payment. My wife and I initially wanted to file for Chapter 7 bankruptcy, but obviously retaining our home, back in 2010, but my bankruptcy lawyer had advised us to go with the loan modification process first and than file for chapter 7 bankruptcy After we received our SAM papers and send it back with our signatures, we called our bankruptcy lawyer to inform her that we were ready to file for chapter 7 bankruptcy that we wanted to file back in 2010. She advised again to wait until the two month trial period was over and to come back to sign the bankruptcy papers in March, in order to prevent the loan modification that we work so hard for from being nullify. So, to be on the safe side, my wife and I waited until May to sign our bankruptcy paperwork after we submitted our June mortgage payment.
After a couple of weeks of signing the bankruptcy papers, I sign onto my Ocwen account to look up my July statement and there was a notification in my screen stating that my loan was part of an active bankruptcy and that I needed to call the 1800 number to update them or for further assistance.
My wife and I are now extremely worry that the modification that we fought two years for will be voided. I reread the SAM agreement and nothing is mention that we cannot file bankruptcy or that filing for bankruptcy will nullify the agreement. I emailed both my bankruptcy and home modification lawyer, but I haven't heard responses yet and I'm started to lose sleep over it. Can someone please give me some insight or perhaps shed some light? Will my modification be saved or would I have to repeat this whole process over again?