Bankruptcy and modification - Loan Modification Forum

lygo28 · 10-06-2009, 12:50 PM

We recently filed bankruptcy. We don't actually have our discharge papers yet. Our current home loan does not include taxes and insurance. I am current on the payments up until this month. My husband has been out of work since February and trying to make it on unemployment and my small salary. My question is, does anyone know how this bankruptcy will effect the loan modification. I have heard from several people that it helps the cause and now because we are late one month, that will push it through quicker. I have been trying to get in touch with Ms. Drake for about three days and have heard nothing. Also, is it true that if they put you on a "trial period" they can renig on it after that trial period is up?

Thanks for any info.

Evan Bedard · 10-06-2009, 01:07 PM

Hi lygo28 welcome and thank you for joining.

Quote:

My question is, does anyone know how this bankruptcy will effect the loan modification. I have heard from several people that it helps the cause and now because we are late one month, that will push it through quicker.

That is not really true, it will still take a while to get a modification. Many people have to wait at least 4-6 months before they get an answer from the bank. Your lender is going to request a letter from your bankruptcy attorney so they can move forward with the modification.

Quote:

Also, is it true that if they put you on a "trial period" they can renig on it after that trial period is up?

Yes that is true.. Many homeowners are getting denied for permanent assistance even after they have completed the trial payments as agreed upon..

BobandArlyn · 10-06-2009, 01:09 PM

Bankruptcy and being late helps. We filed a Chapter 13 Bankruptcy with over $56k in CC debt (house remodeled)...signed ARM papers one week before the bottom fell out! YIKES. We were also late. Really, it doesn't matter when it comes to the HAMP at least.

From what I've read here, the trial mods are not turning into permanant mods for various silly reasons. A few have made it through, but not many.

Good luck to you.

lygo28 · 10-06-2009, 01:30 PM

Does it help to get a lawyer to do this for you? I have been talking to a Brett Margolin Law firm.

kymmer116 · 10-06-2009, 02:02 PM

I think I may need to stay off this site until I get all of our paper work, lol... I just called the rentention dept after I read that they can denie you aftee r the trial period as NOTHING was mentioned to me about it. I was told that IF you complete the trial period then everything is good. I don't know what to do anymore. I am hoping that our paper work comes soon!

BobandArlyn · 10-06-2009, 02:35 PM

Good thoughts coming your way!!

laricb · 10-06-2009, 03:07 PM

I was in the same situation 10 months ago I filed for modification and filed bankruptcy chapter 7 I am still waiting on my modification the bank will wait for the discharge because they are not allowed to do anything while you are in bankruptcy they also will not attempt any collections....the bank needs to wait and see if the judge will force you to sell the house or take equity out of it to pay your debt... I received my discharge about 2 months ago and i finally got my first offer which i turned down they are now reworking the numbers

lygo28 · 10-07-2009, 05:37 AM

So, how many of these are permanent modifications? Does anyone get those or are they all temporary?

10-06-2009, 12:50 PM	#1 (permalink)
lygo28 Member Join Date: Oct 2009 Posts: 5 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Bankruptcy and modification We recently filed bankruptcy. We don't actually have our discharge papers yet. Our current home loan does not include taxes and insurance. I am current on the payments up until this month. My husband has been out of work since February and trying to make it on unemployment and my small salary. My question is, does anyone know how this bankruptcy will effect the loan modification. I have heard from several people that it helps the cause and now because we are late one month, that will push it through quicker. I have been trying to get in touch with Ms. Drake for about three days and have heard nothing. Also, is it true that if they put you on a "trial period" they can renig on it after that trial period is up? Thanks for any info.

10-06-2009, 01:09 PM	#3 (permalink)
BobandArlyn Senior Member Join Date: Sep 2009 Location: Santa Rosa, CA Posts: 374 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bankruptcy and modification Bankruptcy and being late helps. We filed a Chapter 13 Bankruptcy with over $56k in CC debt (house remodeled)...signed ARM papers one week before the bottom fell out! YIKES. We were also late. Really, it doesn't matter when it comes to the HAMP at least. From what I've read here, the trial mods are not turning into permanant mods for various silly reasons. A few have made it through, but not many. Good luck to you.

10-06-2009, 01:30 PM	#4 (permalink)
lygo28 Member Join Date: Oct 2009 Posts: 5 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bankruptcy and modification Does it help to get a lawyer to do this for you? I have been talking to a Brett Margolin Law firm.

10-06-2009, 02:02 PM	#5 (permalink)
kymmer116 Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bankruptcy and modification I think I may need to stay off this site until I get all of our paper work, lol... I just called the rentention dept after I read that they can denie you aftee r the trial period as NOTHING was mentioned to me about it. I was told that IF you complete the trial period then everything is good. I don't know what to do anymore. I am hoping that our paper work comes soon!

10-06-2009, 02:35 PM	#6 (permalink)
BobandArlyn Senior Member Join Date: Sep 2009 Location: Santa Rosa, CA Posts: 374 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bankruptcy and modification Good thoughts coming your way!!

10-06-2009, 03:07 PM	#7 (permalink)
laricb Junior Member Join Date: Oct 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bankruptcy and modification I was in the same situation 10 months ago I filed for modification and filed bankruptcy chapter 7 I am still waiting on my modification the bank will wait for the discharge because they are not allowed to do anything while you are in bankruptcy they also will not attempt any collections....the bank needs to wait and see if the judge will force you to sell the house or take equity out of it to pay your debt... I received my discharge about 2 months ago and i finally got my first offer which i turned down they are now reworking the numbers

10-07-2009, 05:37 AM	#8 (permalink)
lygo28 Member Join Date: Oct 2009 Posts: 5 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Bankruptcy and modification So, how many of these are permanent modifications? Does anyone get those or are they all temporary?

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