Before COVID, I had worked at a part time job so I could be with my children. I quit a full time job and took half the pay to do this-my choice. Along the way, the money I had saved up diminished and in my stupidity, I took out a title loan to pay for things. BIG mistake. It was basically the only thing I could pay just to keep the vehicle and everything else fell behind. I tried to modify my loan twice during this time with my lender, Fifth Third. The first time, enough time hadn't lapsed before a modification on my loan and the second time, they said it would have been too much of a payment for me to be able to do but they never let me know what that was or gave me a chance to determine that. I filed for bankruptcy. COVID hit and my hours were cut even more so the bankruptcy had not been a success but they did allow me to modify that payment to stay in at this time to save the home. I am back to work full time, but just trying to get caught up has been exhausting and I feel that the payments that I am making to stay in the bankruptcy isn't worth it plus the mortgage on top of that. I feel that there is a better way but my lender doesn't seem too eager to assist in any way. Any options or advice would be greatly appreciated. I just want some normalcy.
Past due prior to COVID as well
- Thread starter csturgill
- Start date
Survivor_IN
LoanSafe Member
Even if you have modified once, you may be able to modify again. I'm not exactly sure if your past default is still considered a default per say in post COVID world in your explanation. Sounds like a struggle. Failed bankruptcy does not undo a modification. I think you are free to try again given reductions in income are affecting mortgages once more. - Also some programs provide 3 months assistance (now turned into 6 months relief) and this may be under the State's plan to distribute COVID relief funds. I know this has been a part of evicition relief for rentors in my particular State but this may be different for homeowners. Hang in there. Programs may change with passage of federal bills and initiatives. If you can't hang in there, bank payments or partial payments in savings for negotiations later.
Survivor_IN
LoanSafe Member
There is also option of converting bankruptcy from chapter 11 to chapter 7. This might free up some funds, given you have children/dependents, income qualifications could possibly be met.