Opinion needed on ch 13 w/mort mod

[wldfowlr]

I will start with a THANK YOU for this site...I have googled' 'til I was blue in the face, and then I ran across your site...ALL the info I was looking for is right here....

How does all of this "wash out" in a situation where the homes value may actually still be higher than what is owed on the home?

Example: 1st mort fixed int $205k w/2nd mort $45K...2007 appr. value of $280K.

We are facing foreclosure becuase I am now disabled and drawing SSD... my spouse still works...We are current on house, but late on all other debt. We see no other way than to file ch. 13, but if we can't keep the house, it makes no since to us to do so.

My research shows that my income is exempt in ch. 13, so that leaves my spouses income of about $2100 a month.

The 1st mort payment is $1466 and 2nd is $345...we do not escrow our tax/ins...it is payed lump sum each January($6500)

I know this is somewhat vague info, but I have been unable to locate any info on a situation like mine. If I have posted this in the wrong forum, would someone please move it to the proper one?...

[Moe Bedard]

Hi wldfowlr,


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


The best thing that you can do to understand all of your options is to first sit down with a bk attorney and let them explain to you exactly what filing a bk will be able to do for you..............the consultations for bk are normally done at no charge............when you know what you are facing..........then you will be able to make an informed decision that is best for you from there.

[wldfowlr]

Thank you for the reply....

Let me add this to my original post....I guess my main question is who determines the value of the house?

For purposes of mortage modification bill, if the home is worth more than owed, are you still eligible for mod. under chapter 13 if you meet all other req. for ch 13 and the 31% bill?

Thanks again.

[Moe Bedard]

the modification under the bk is used as a last resort only.............

the bk modification is for the properties that are underwater specifically...............if yours is not but your mortgage payments is more than 31% of your gross income..........than that would be one of the requirements for the modification program.................
here is a link to the rest of the guidelines............

http://www.treas.gov/press/releases/...guidelines.pdf




How Judicial Modification Works:

Appropriately tailored bankruptcy legislation provides a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that they are able to pay. After borrowers have tried unsuccessfully to obtain affordable loan modifications from their lenders or servicers, in the appropriate circumstances, a bankruptcy judge should be able to reduce the outstanding principal balance of a primary residence home mortgage loan to current fair market value—just as is done with vacation homes or investment properties--when a person has no other options.

[Micro]

I have written a hardship letter and have read it over and over. I am trying to apply for the modification loan with a third party. My income is roughly 2,900 a month plus my wifes disability check of about 1,500. We are under water as far keeping up with our payments. We are 3 months behind on the mortgage. We are barely keeping up with other expenses, i.e, medical,utility,electric expenses. In the hardship letter, should we add that we are strongly thinking of filing for bankruptcy just to make ends meet and keep our home. Any suggestions is much appreciated.