Loan mod and chpt 7

[mgrimes89]

Any advice on this one. I started a loan mod program and had 4 payments. The last one was due on June 1st and then the permanent modification package was to be confirmed. I needed to file chapter 7 in May, and did so on May 27th. My lender USAA now says my package needs to be restarted due to the bankruptcy. Is the bankruptcy going to affect the loan modification. My understanding is that the modification payment was figured based on my gross income. The lender won't take a modification payment now due to the bankruptcy and I am basically in default/late on my mortgage payment. Am I considered 4 months late now since the payments were loan modification payments? Any advice as to handle this??

[justbroke]

I can't specifically answer for USAA. I did one while in Chapter 7 and it took 6 weeks. There were NO "trial payments" at all. In fact, I made one payment equal to one month's mortgage and was able to skip the next 45 days. They even recorded the modification with the County Recorder.

(The reason I had to pay about one month's mortgage was to decrease my negative escrow balance a little.)

[Ann]

Is it possible to get a modification on your mortgage after you are discharged from a chapter 7 IF you do NOT reaffirm the mortgage??? This may be a very silly question but does anyone know if it is possible???

[justbroke]

Is it possible to get a modification on your mortgage after you are discharged from a chapter 7 IF you do NOT reaffirm the mortgage??? This may be a very silly question but does anyone know if it is possible???

Yes, it is possible. I did not reaffirm my mortgage, it is discharged, and I received a modification while the Chapter 7 was pending.

[freeatlast98]

Yes, it is possible. I did not reaffirm my mortgage, it is discharged, and I received a modification while the Chapter 7 was pending.

I beleive you mentioned in a previous post you were with
B of A. If it was BofA, the filing of BK didn't cause problems with the modification process? Does it matter what state you're in as far as dealing with BofA? Also was your modification an in-house modification? I'm in California so I was just trying to get an idea of what to expect..

[justbroke]

I beleive you mentioned in a previous post you were with B of A. If it was BofA, the filing of BK didn't cause problems with the modification process?

When i filed my Chapter 13, it did affect it, and stopped the modification process.

However, when I filed Chapter 7, I asked for the mod right after I filed.

Does it matter what state you're in as far as dealing with BofA? Also was your modification an in-house modification?

Mine was in-house as they said something about HAMP, but did it in-house. I'm in Florida, and I don't really understand their policies myself. You really can't bank on what happens with one person.

[Pandora]

Are you going for an in-house mod or for HAMP? There are clear laws for HAMP that state filing BK cannot stop the modification process if your loan is Fannie or Freddie owned (and thats the key right there, who owns your loan). In-house, I dont know, as we were HAMP approved, however we didnt file CH. 13 until after we had our perm. signed documents back from the bank.

Go to the Making Homes Affordable or Financial Stability websites and review the laws of HAMP. I do know the laws just changed 1 June 2010.