BK and the "Obama Plan"?

[Dizzy]

My husband and I are definately going to have to file CH7 in the next few months and are behind on our mortgage, but we haven't gotten anything official about proceedings yet. Has anyone here gotten a loan mod under the Obama Help For Homeowners Plan? If so, did you wait until it was approved to file CH7? Do you have to tell them you intend to file? Did you tell them about your debts even if you know they won't be there after you're discharged?

[AngelinaCat]

The Obama Plan is so new that I don't know if anyone will be able to give you a definitive answer.

A friend of ours is ssupposed to be working from home as a middle-man filling out and filing the paperwork that is sent to him via email. This sounds a little fishy, but if it truly turns out to be legit, I will report back when I learn more.

Good luck.

[Dizzy]

Thanks, AC.

[2Bshinyandnew]

My husband and I are definately going to have to file CH7 in the next few months and are behind on our mortgage, but we haven't gotten anything official about proceedings yet. Has anyone here gotten a loan mod under the Obama Help For Homeowners Plan? If so, did you wait until it was approved to file CH7? Do you have to tell them you intend to file? Did you tell them about your debts even if you know they won't be there after you're discharged?

I'm in the process of attempting a mod under Making Home Affordable. I was advised to put off filing BK until after I complete the trial period and my mortgage was modified, although you are still eligible if you have already filed for BK.

You don't have to tell your lender you intend to file.
Your lender will pull your credit report so they will know about your debts.

The main criteria to be eligible for MHA mod and all the guidelines can be found here:

http://makinghomeaffordable.gov/

[Dizzy]

But if they factor in the debts on my credit report won't it look, and rightly so, like I couldn't afford any kind of mortgage payment? To they WANT a bad credit report? I sure wish I knew the magic formula or magic words they want to hear. I SO don't want to lose this house if I can keep from it but a 13 is not possible.

[OhioFiler]

But if they factor in the debts on my credit report won't it look, and rightly so, like I couldn't afford any kind of mortgage payment? To they WANT a bad credit report? I sure wish I knew the magic formula or magic words they want to hear. I SO don't want to lose this house if I can keep from it but a 13 is not possible.

You first should go to the website 2bshinyandnew provided to see if your mortgage is even a qualifying loan. Then you take their "means test" to see if a loan mod is avaiable for you. Then you get with your lender.

[123ABC]

I have been trying to get a loan mod with U.S. Bank since April 6. At this point I can no longer wait to file my BK. I am getting sued left and right by the credit card companies. I am just keeping my fingers crossed that I can still get my loan mod after the BK is complete.

[Dizzy]

I went to the website and I do qualify for it, but I remember trying to get help six months ago and they told me that according to the figures I gave them including the minimum payments on my debts and living expenses they couldn't help me because I didn't have enough left to make a payment. They suggested I try to sell the house. As if. Then I tried again and just didn't tell them about the debts and they said I should be able to make my normal payments and I wouldnt qualify. I wonder if anything would be different this time. That's why I knew the magic words they want to hear.

[2Bshinyandnew]

I went to the website and I do qualify for it, but I remember trying to get help six months ago and they told me that according to the figures I gave them including the minimum payments on my debts and living expenses they couldn't help me because I didn't have enough left to make a payment. They suggested I try to sell the house. As if. Then I tried again and just didn't tell them about the debts and they said I should be able to make my normal payments and I wouldnt qualify. I wonder if anything would be different this time. That's why I knew the magic words they want to hear.

That is exactly why MHA is supposed to be different. If your back-end debt to income ratio is greater than 55% you can still get a mod, they will just require you agree to debt counseling. The factor that matters most is whether you monthly payment including PITI is greater than 31% of your gross monthly income. As long as the MHA site says you qualify I would get on the phone with your lender/servicer YESTERDAY and say you want to apply for Making Home Affordable Modification AKA Home Affordable Modification AKA HAMP

There are tons of PDF's on the MHA website that explain all the eligibility criteria. After reading them all you will probably know more about it than the rep that you talk to when you call your lender.

[Dizzy]

I know you're going to laugh, 2Bshiny, but what is "back-end" debt? Also, would you happen to know my husband needs to include debts in my name only as I am not on the mortgage, or just his?

[kenshirley]

Our daughter got an offer after a couple of months of waiting on her lender to get with the program. The offer was to forgive all past due fees if she would come current and they were going to reduce her payment by about $100 or so. That payment was some $1600 in interest and principal.
I don't know if they applied the government plan correctly or not.
It almost appears to me that some of these lenders would just as soon take your home and stockpile it waiting for the market to recover.
But that's just my opinion from what I am seeing and what people I know are experiencing.

[Dizzy]

Wow, kenshirley, and that was the Obama plan? How is that supposed to help someone? Coming current is the hard part, and then only offering a $100 in monthly payment isn't much at all.

[kenshirley]

She does not have a clue if it was the plan proposed by the government.
I did not expect a great give away but I thought that it may help her more than it did.
Needless to say she did not take the offer. She is out of work and cannot come current on her husband's income and she lost her $70k per year job last November.
They will most likely follow us into chapter 7 within a couple of months. And I don't think he makes enough money to keep the house either so they may have to move in with us for awhile and hope things don't get worse in this economy.
At least we are retired and can provide them a place to live and put food on the table for them and their child.

[anmartin31]

I am on a trial mod thru the Obama plan. You have to go thru a 3 month trial period where you make payments that are 31% of you income, it took almost $600 off the monthly payment, they cut the interest rates from 6.7 to 5.1 and then after the 5 year payment plan is over the interest goes to 5.2 and locks in for the remainder of the loan. I was about to file CH7 in July and then I was told I was accepted in the program. My attorney said to hold off on filing until Oct 1st when the loan modification is locked in. You cannot get a loan mod if you are in the bankruptcy process. Dont tell the mortgage company that you are filing, they will stop working with you and it will stop any loan mod thats in process.

[kenshirley]

Now see, that sounds like something that will help!

Hey, wait a minute! How did I get to Mentor status???