Chapter 7 After Modification With Partial Claim

Keithb

LoanSafe Member
I had my loan modified last year. This modification involved me taking the FHA Partial claim, which will need to be paid once the loan matures. Times have gotten worse and I am investigating the idea of a chapter 7 bankruptcy. I would plan on retaining the house and keeping current. Does anyone know how that would affect the amount that i owe on the partial claim. Would it still be due once I pay off the loan?
 

pennygram

working for consumers
IF your last loan mod was at least 12 months ago try applying for another loan mod. With the new respa they have to consider you one time since Jan 2014. If you are not past the 12 month mark tread water until you get there and then apply. Usually a 45 day or less process once your application has been deemed completed.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage

Keithb

LoanSafe Member
yep, I was hoping to avoid having to reaffirm, but am prepared to do so if it means keeping my home. On the plus side, reaffirming the mortgage would help me rebuild credit
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
I do not blame you. Just please make sure this is true with your lawyer. But yes, rebuilding your credit is the plus side in all this.

Good luck!
 

pennygram

working for consumers
you are not suppose to be able to reaffirm a debt that was discharged in bk without the bk court approval. A true reaffirmation has to happen within a specific time frame before discharge, filed with the court and approved by the judge.

I believe we will see challenges to these so called "reaffirmations" in the next couple years due to the untimely way these are being handled.
 

perplexing

LoanSafe Member
A partial-claim agreement often has language specifying that the agreement is terminated when the Borrower files for bankruptcy protection. That leaves the Partial-Claim's lien, held by HUD, only (i.e. the terms are voided but the lien still exists and will need to be paid in order to transfer title in the future.)
 
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