Home Loans and Support

Modification after Chapter 7 discharge?

Discussion in 'Loan Modification' started by j&dpal, Oct 21, 2009.

  1. j&dpal

    j&dpal LoanSafe Member

    Hi All,
    So glad we found this site! This question has been probably been answered somewhere, but we haven't seen it, so here goes...
    We filed Ch 7 in NV last year and it was discharged on May 15, 2009. Our first and second mortgages were included, no reaffirmation agreements were signed. Our first is with WAMU/Chase with a balance of approx. $239 K. Second is with B of A with a balance of approx. $49 K. Our house just appraised for $139K last month. On the advice of our BK attorney, we stopped paying on the 2nd mortgage when we filed bankruptcy. We were paying on the 1st mortgage...never missed a payment until this month. We've had some issues and just can't get the payment together, and not sure how long it will be before we can resume our monthly payments.
    Before the BK discharge, we tried to get WAMU to talk to us about modification, but never could get a response.
    We downloaded the loan mod forms from their web site, and are afraid to sign it as it's worded:

    1. Under penalty of perjury, I/we certify that all of the information in this affidavit is truthful and the event(s) identified above has/have contributed to my/our need to modify the terms of my/our mortgage loan.
    2. I/we understand and acknowledge the Servicer may investigate the accuracy of my/our statements, may require me/us to provide supporting documentation, and that knowingly submitting false information may violate Federal law.
    3. I/we understand the Servicer will pull a current credit report on all borrowers obligated on the Note.
    4. I/we understand that if I/we have intentionally defaulted on my/our existing mortgage, engaged in fraud or misrepresented any fact(s) in connection with this Hardship Affidavit, or if I/we do not provide all of the required documentation, the Servicer may cancel the Agreement and may pursue foreclosure on my/our home.
    5. I/we certify that my/our property is owner-occupied and I/we have not received a condemnation notice.
    6. I/we certify that I/we am/are willing to commit to credit counseling if it is determined that my/our financial hardship is related to excessive debt.
    7. I/we certify that I/we am/are willing to provide all requested documents and to respond to all Servicer communication in a timely manner. I/we understand that time is of the essence.
    8. I/we understand that the Servicer will use this information to evaluate my/our eligibility for a loan modification or other workout, but the Servicer is not obligated to offer me/us assistance based solely on the representations in this affidavit.
    9. I/we accept and agree to all terms of the Home Affordable Modification Trial Period (“Trial Periodâ€) Plan which is incorporated herein by reference as if set forth in full.
    10. I/we agree that when the Servicer accepts and posts a payment during the Trial Period it will be without prejudice to, and will not be deemed a waiver of, the acceleration of my loan or foreclosure action and related activities and shall not constitute a cure of my default under my loan unless such payments are sufficient to
    completely cure my entire default under my loan.
    11. I/we agree that any prior waiver as to payment of escrow Items in connection with my loan has been revoked.
    12. I/we agree to the establishment of an escrow account and the payment of escrow items if an escrow account never existed on my loan.
    13. I/we understand that Servicer will collect and record personal information, including, but not limited to, my name, address, telephone number, social security number, credit score, income, payment history, government monitoring information, and information about account balances and activity. I understand and consent to the
    disclosure of my personal information and the terms of the Trial Period Plan and Modification Agreement by Servicer to (a) the U.S. Department of the Treasury, (b) Fannie Mae and Freddie Mac in connection with their responsibilities under the Homeowner Affordability and Stability Plan; (c) any investor, insurer, guarantor or
    servicer that owns, insures, guarantees or services my first lien or subordinate lien (if applicable) mortgage loan(s); (d) companies that perform support services for the Home Affordable Modification Program and the Second Lien Modification Program; and (e) any HUD certified housing counselor.

    We're concerned whether signing this form will affect our discharge, or if the way it's worded (i.e. the item in red) could be interpreted as a reaffirmation of any kind?
    Also...since our loans have been discharged, does anyone know if they would tend to move to foreclose faster than 'usual' if we can't make the payment on the 1st mortgage for a few months?
    Sorry this is so long...and thanks very much!
    J&D
  2. Liz760

    Liz760 LoanSafe Member

    I'm going through the same thing in CA. Finished the three trial payments, Chase sent loan modification papers. I did not sign. They were due 11/3/11. I am so fearful that it would be construed as a reaffirmation and they would come after me with a defeciency judgment if I can't make the new payment. It will take 7-10 years before you can file again. Too late now sinced I missed the deadline for returning the agreement. I could not get a clear, straight answer - so I guess I'm walking after all of this nightmare! Good luck to you!

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