Help! in active bankruptcy(chp13) and applying for loan mod

[avvojin]

thanks Cat... So today, someone from Wells Fargo called me and asked "Do you have a rental income as of this moment?". My response is "no". He never elaborate further so I thought of not opening up anything. If he asked why, then I will have an answer. I'm glad I thought about this earlier which you advised me prior them calling me and asking.. I'm glad to be in this forum.

-jin

[Cat Damiano]

We are glad we are able to help. Keep us posted on how it goes.

[avvojin]

Hi Cat and all, Wells Fargo(it seems the guys is from OOP) has gotten back to me yesterday. She said that my request for modification was denied. Reason is my loan is mortgage-backed security type(WFMBS AR7) and the investors are not allowing it. She even mentioned that I got a loan mod before(2yrs ago) which is not really a loan modification per say since it is not permanent and it looks like it is only a forbearance since it lasts for 18mos only.

Any other thoughts on what other options or possible route I can take? Do you think it makes sense to pay $4200 per mo loan(loan amount is $700k) for a house worth only $400k? Is it time to hide my $$$ now? Please advise since I'm a little overwhelmed now.

thanks, jin

[Cat Damiano]

Hi Jin,



I can only state what I would do if it were me, and if it were, I wouldn't hold onto a property that is 300k underwater. I would cut my losses and move on to something where the payment was alot less than $4200, but as I stated, it if were me.

[avvojin]

Hi Cat, This home still have sentimental value to me and my family. But I agree with you that financially business wise, I'd rather drop it and find something better. However, it will be tough for me and my hubby to find one soon since we are in chp13 BK and our credit is dead shot aside from having only single income So our plan will be to skip payments($4200/mos) and see how it goes and if Wells will give a chance to modify mortgage to affordable payments. If not, then we will let go of this home and move on. Any insights on rough schedule of foreclosure around bay area?

Also, I would love to hear from anyone in this forum with similar experience (private investor or mortgage backed security type of loans) and got approved for a permanent modification(like HAMP) even without principal reduction.

I just like to know what other options I may have while we are preparing to walk as needed.

-jin

[Cat Damiano]

Hi Jin,


I understand, it is a very difficult decision to make, I have been through it personally and have a permanent HAMP modification with Chase as my servicer and Aurora bank as my investor.

[Meagan G]

Hi. We are in active Chapter 13 Bankruptcy and have been applying for a Loan Modification as well. We are not in default and have never missed a payment. We pay our Mortgage outside of our 13 plan. I am about to re-apply again after a few years. We were denied in 2008 & 2009 - First time our denial simply said, "Do not qualify for HAMP" the second denial said "Denied per Investor". We have an adjustable that adjusts annually with the treasury index. Our payments have not increased since the index and rates have been low but we know eventually the index/rates will increase and every year that our loan adjusts it amortized over one less year, which increases the payment as well. All we are asking for is to be converted from an Adjustable to a Fixed rate. We have a $125K Equity Line that was included in our Bankruptcy, which will be "stripped" upon discharge of our BK. Does anyone know if when they qualify us for the modification and run our credit, will they include the payment on our 2nd or will they not since it's included in the BK? Our Lender is Wells Fargo and our investor is B of A. Any tips/advise anyone who has applied for a modification during chapter 13 can provide is greatly appreciated!! Thank you.

[frankie]

I have a quetion just thinking about filing chapter 13 and do not really know the rules does it allow you to keep all your assets or do they force you to sell them and only allow you your primary residence. We are upside down as well high debt to income ratios due to loss of business and we were recently denied a modification so trying to see what other options my be available.

[Cat Damiano]

frankie,


Here is some basic information that may be able to help, for specific information, you would need to consult with a bk attorney in your state;

Chapter 13

[TomEason]

I have a quetion just thinking about filing chapter 13 and do not really know the rules does it allow you to keep all your assets or do they force you to sell them and only allow you your primary residence. We are upside down as well high debt to income ratios due to loss of business and we were recently denied a modification so trying to see what other options my be available.

Yours is a simplistic question in a complex topic. There are many books in circulation dealing with Ch13 BK, to include the various rules and exemptions applicable in the 50 states. You might visit your public library for further edification.