mortgage modification post-Ch 13 confirmation

[switch625]

i've been considering a mortgage modification post ch 13 confirmation, especially since my first and second lenders are the big banks that have recently entered into multibillion settlement agreements with the Justice Department. I'm waiting to get more info on what they will be offering, but at most, I'm looking for interest rate reduction on the first mortgage and home equities and maybe fold the arrearages I'm paying under my Ch 13 plan into the my mortgages. How doable is this in your experience? Are lenders willing to do it? I figure I'm a year away from paying off the mortgage arrearages, given how my Trustee is paying them.

A second thing I'm looking to do is with a reduced mortgage and home equity payments, is to go 100% on my Ch 13 plan with the intent of restarting 401 K contributions. if I'm paying 100%, then the trustee shouldn't care about any DMI past the 100% obligation, right?

[LadyInTheRed]

I can't speak to your chances of getting such a modification. But, adding arrears to your loan and increasing your payment to unsecured creditors instead of paying the arrears in your Chap 13 seems shortsighted to me.

As far as your 401K contributions is concerned, if your plan is modified because of reduced mortgage payments and you still have enough money to contribute to your 401K after making your new plan payment and paying your other expenses, go ahead and contribute to your 401k. You should not propose a plan with a goal to pay 100% of to unsecured creditors unless you are required to do so because of non-exempt assets or a high dmi. There is nothing that says you have to stick to the budget reflected in your Schedules I and J after your plan is confirmed.