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Loan modification after Chap 7 bankruptcy

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by imny93, Oct 16, 2013.

  1. imny93

    imny93 LoanSafe Member

    I was wondering if anyone has experience in getting a loan modification or receiving an offer from CHASE for a loan already discharged in Chapter 7 Bankruptcy without doing a re-affirmation through bankruptcy court
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    You are NOT required to reaffirm your mortgage to qualify for a loan modification, we have many members who have successfully done so.

    Am I eligible for HAMP if I have received a chapter 7 bankruptcy discharge?

    Yes, even if you have received a chapter 7 bankruptcy discharge, you are eligible for HAMP. If you did not reaffirm your mortgage debt, the following language must be inserted in the Home Affordable Modification Agreement:

    “I was discharged in a chapter 7 bankruptcy proceeding subsequent to the execution of the Loan Documents. Based on this representation, Lender agrees that I will not have personal liability on the debt pursuant to this Agreement.”

    Here are several threads with members who've completed a mod post Chapter 7 discharge: http://www.loansafe.org/forum/chase...4531-help-info-champ-modification-please.html

    http://www.loansafe.org/forum/loan-modification/52008-hamp-success-w-first.html

    http://www.loansafe.org/forum/loan-modification/49840-looking-advice-loan-mod-during-chap-7-a.html
  3. SharksFan

    SharksFan LoanSafe Member

    I'm going through this right now with Chase...they denied my FHA-HAMP because the co-borrower filed Ch 7 BX and didn't reaffirm the debt (was told by Chase can't reaffirm unless mortgage is current). I'm working the Chase's executive office, but no answer after 2 weeks now. Also have a case open with NFS (HUD), so we'll see...
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Hello SharksFan,

    I know we've discussed this is another similar thread, but have you considered having the co-borrower sign a quit claim deed so you can move forward with the modification?
  5. SharksFan

    SharksFan LoanSafe Member

    They already did, at the advice of Chase.
  6. SharksFan

    SharksFan LoanSafe Member

    Chase said I was declined for the FHA-HAMP mod because the non-occupying co-borrower did not reaffirm the debt. They stated the FHA-HAMP mod I was approved for included a Partial Claim, and that FHA Guidelines state borrower must reaffirm (mortgage letter 03-19 does say this too...) However, she quitclaimed the house to me in April, filed Ch 7 BX in May, and was discharged in Sept.

    The Making Home Affordable Handbook 4.3 states: "An occupying co-borrower may be considered for HAMP if a quitclaim deed evidencing that the non-occupying co-borrower has relinquished all rights to the property has been recorded. Servicers must refer to investor guidance to determine which parties are required to sign the HAMP documents."

    Does this mean that her non-reaffirming the debt shouldn't affect my loan mod? Since I would be the only one signing the docs? Or would she still need to sign the promissory note (partial claim)?
  7. TomEason

    TomEason LoanSafe Guide Staff Member

    Hi SharksFan

    Thanks for your post.

    I commend you for having referred to the Handbook. It would seem that Chase has erred.

    I recommend you write a letter to Jamie Dimon, and also contact the MHA Compliance group.

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