Mortgage modification AFTER filing?

[greenthinker]

We are three payments behind on our mortgage with Bank of America, and have retained an attorney for filing Ch. 13. We were holding off on filing because B of A was leading us to believe that they would give us a capitalization modification (adding the past due amount to the principal balance), so that our mortgage would not have to be included in the BK.

One day I called B of A to follow up, feeling frustrated that there was absolutely no progress on the modification, and I happened to speak to someone who sounded like he knew what he was talking about. This representative informed me that a modification would take months, and would have to be completed before we filed because, once we file for BK, our application would get kicked out of the system because of the change in our financial status. He said that we should go ahead and file, then contact them to start the modification process, and provide a letter from our attorney authorizing the bank to contact us directly. He also said that they have a whole department that deals just with this type of situation.

I wanted to share this in case anyone else is in a similar situation because after so many phone calls it seemed like only random luck that I got to speak to someone at B of A who was competent. I'm sure that my experience is not unique, and not just with B of A!

I also wanted to pose this question: Does being in Ch 13 change your financial status in a way that is more favorable to getting a loan modification?

[justbroke]

I also wanted to pose this question: Does being in Ch 13 change your financial status in a way that is more favorable to getting a loan modification?

No and Yes. A modification will always be based on your income and expenses. Even in a Chapter 13, you may still be paying money to unsecured creditors (your disposable monthly income -- DMI). The lender still needs to take the entire plan and payments into account vis-a-vis your income.

I did receive a modification in my Chapter 7, but my pre-Chapter 13 modification was canceled when I filed the Chapter 13. I never tried to renew the modification.

[leosmom]

Hi,
Thanks for your post. I have a question for you. When you got a modification after discharge were you current on your mortgage payments? Who was your lender/investor? Did you get the modification during the ch 7 or after. I am 6 months out of discharge and I am applying for a modification with CHASE/ Wells Fargo investor/ but I am current on the mortgage. I got denied because they are not doing imminent default modifications right now. I am imminent default since I am current but qualify.... I am about to miss my first payment but I am so worried about the fact that I have discharged the mortgage. I am worried that Chase can just take the house if I miss one payment even if I start making payments again in March.
I would love to hear from anyone who has gotten to the trial payment stage with Chase or Wells Fargo after a discharge or being behind.

[justbroke]

I received my modification while my case was pending (after filing and before discharge). It was a Bank of America loan (not Countrywide). I was not current due to the Chapter 13 (paying arrears).

A lot of this is just situational and lender-dependent. As I didn't, you shouldn't depend on the modification since they do not always happen, and I hear rumblings that HAMP might go away (maybe replaced with something else).