Loan Modification after Chapter 7 Discharge

[OhioFiler]

I agree with the Assistant General Counsel. Technically, you don't have a debt that can be modified. There is no debt as it was discharged in the bankruptcy.

[adv1234]

Surely someone knows the answer to this question, I hope...

[adv1234]

My home is work less than the 1st mtg. I paid 200k for the house in late 2006 with a 160k 1st and 30k 2nd. At best the house is worth 160k.

[maddog2112]

Just out of curiosity, how much of your 2nd mortgage was secured by your property value.

[adv1234]

I am trying to work something out with my first (80%) and second (15%) mortgages based on my new, lower income. I am 6 months out of my discharge on a Chapter 7.

The second mortgage holder has agreed to settle for about 10% of the loan, but the first mortgage holder has been downright impossible to deal with. Finally, after 6 months of trying to get through, I got a letter from the Assistant General Counsel of the company that says I am not eligible for a modification because the holder or my loan (Fannie Mae) does not allow a modification of a loan that has not been reaffirmed following a Chapter 7 bankruptcy discharge.

I smell b-s on this one. I have not read anywhere that bankruptcy eliminates consideration for a modification, or the need to reaffirm. Can anyone confirm or deny if this letter is true?

Thanks in Advance