BofA Offered a Trial Loan Mod after my 341, Is that ok to participate in?

[dirkdigler]

Hello Everyone,

My 341 meeting was Nov 3rd, a couple of days later BofA sent me a letter to see if I wanted to do a Trial loan Mod for 5 months. I spoke with my attorney and he said its up to me if I wanted to participate, he said since I did not reaffirm my mortgage I can still just walk away after 5 months if I dont get approved or I dont like the terms of the new contract.

Is this true?

also whats the likelyhood that BofA will approve the loan mod if at any point I can just walk away without liability?

thank you

[AngelinaCatHub]

Hello Everyone,

My 341 meeting was Nov 3rd, a couple of days later BofA sent me a letter to see if I wanted to do a Trial loan Mod for 5 months. I spoke with my attorney and he said its up to me if I wanted to participate, he said since I did not reaffirm my mortgage I can still just walk away after 5 months if I dont get approved or I dont like the terms of the new contract.

Is this true?

also whats the likelyhood that BofA will approve the loan mod if at any point I can just walk away without liability?

thank you

Be VERY careful about even a trial as you could be reaffirming as a new mortgage after 341 and be stuck with a non dischargeable status. Don't be tricked, and advise your lawyer about this. Don't do ANYTHING if you have a lawyer, without informing him first. Could get your bk screwed up.

You also need Court permissions to acquire further debt and that would be what you are doing essentially. 'Hub

[tobee43]

i agree with hub...i would run it by your atty.

are you planning on keeping the house??? if you are you may want a loan mod but not to reaffirm the house in the bk.

we actually surrendered our house..it was vacated...and after 2 years out and our bk discharged chase asked us to reaffirm and to do a loan mod...NUTS!! too little to late for us.

however, only you know if you want to keep your home, we did not, so it was a no brainer for us.

[AngelinaCat]

Hello Dirkdigler. I removed the identical post that you put in the 'Mortgage After BK' forum. Please don't put duplicate posts in more than one forum. If they are allowed to stand, it becomes too confusing for people trying to respond and follow the threads. For that reason, duplicate posting is against the forum rules.

Thank you

[dirkdigler]

sorry for the double post.


my understanding is I can try the trial mod, If I'm approved and I like the new terms I can start a new contract. If I dont like the new terms I simply walk away.

I would like to stay in the house, but only if I can afford it. BofA trial is 31% of our gross income and it includes property tax and HOI. If I go out and rent It's gonna be around the same price and I would never sign anything with BofA unless I like the new terms.

[AngelinaCatHub]

Sounds reasonable. Make sure you are not tied and, and that it will be permanent. When you do rewrite though, I believe that you will then be a new debt and no 'walk away-able'. With the HOI and taxes tucked in, sounds good. 'Hub