loan mod/refinance after BK7 without reaffirming before a 2-4 year waiting period???!

[cablebandit]

[Referring to the last couple of posts in this thread: http://www.bkforum.com/showthread.ph...ery-bad-idea.]

wait! So you guys are telling me you CAN get a loan mod/refinance after BK7 without reaffirming before a 2-4 year waiting period???!! I just talked to Citimortgage and they of course said it's not possible. Here is our info:
BK7 Discharged may 2012
we did a 80/15/5 purchase in 2006
Currently:
Zillow value 174k
citimortgage 1st 193k at 6.375%
citimortgage 2nd 33k at 8.5%

We have always been current and would like to keep the house but would like to mod/refinance. How do we get them to play ball....stop paying both the first and second? we have no problem doing that and putting the money into savings to be paid at a later date if necessary. Thanks!

[AngelinaCat]

Hi cablebandit:

Welcome to the forum. I moved your post into a thread of its own so that it can more easily seen and responded to.

[cablebandit]

why thankyou!

[sh9730]

I cant offer any suggestions as to how to get Citi to move - maybe call NACA or one of those places - or contact the CEOs office and they will assign an executive team person. BUT, I am living proof of getting a MODIFICATION (not a refinance - big difference!) after my CH7 was discharged in 08/2011 and I did NOT reaffirm. I got a much lower rate and they rolled all my missed interest payments (I hadnt been paying for awhile so that part doesnt apply to your situation), and they waived all late charges etc.

NOW, there are some loan mod parameters that require you to be behind (they call it in imminent threat of default) in order to kick in....but the bank can do an "in house" modification any time they want - but since you are paying they are sort of not motivated to do that right now. SO, you could stop paying for a few months and see if that kicks them into gear - it wont hurt your credit since the loan is likely already reporting IIB since you didnt reaffirm - of course you take the chance they wont offer you a mod, but then you could just catch up on the payments again and you should be ok.

The recently announced REFINANCE programs for people that are current likely are not available to you since you included the loan in the BK.

[Drazil65]

We have been offered a modification on our rental property by BOA. We were discharged in March 2012 but we do not want to delay the foreclsoure process any longer (had tried to short sell it before filing and it was a disaster with BOA) so we told them to proceed with foreclosure (we surrendered rental in chapter 7). I believe there are many people here that have been able to receive a modification after discharge. You will not be able to refi without signing back up for the debt I believe. Try for the mod with your bank and see what they say, you have nothing to lose in asking them!

[btbeme]

[Referring to the last couple of posts in this thread: http://www.bkforum.com/showthread.ph...ery-bad-idea.]

wait! So you guys are telling me you CAN get a loan mod/refinance after BK7 without reaffirming before a 2-4 year waiting period???!! I just talked to Citimortgage and they of course said it's not possible. Here is our info:
BK7 Discharged may 2012
we did a 80/15/5 purchase in 2006
Currently:
Zillow value 174k
citimortgage 1st 193k at 6.375%
citimortgage 2nd 33k at 8.5%

We have always been current and would like to keep the house but would like to mod/refinance. How do we get them to play ball....stop paying both the first and second? we have no problem doing that and putting the money into savings to be paid at a later date if necessary. Thanks!

I have an ear in the local mortgage market, and the conditions change weekly as to who and how loan modifications get done (or not). But there are some pretty reliable processes and strategies to try...

First, having a first and second at the same bank might make it a more difficult situation. It means that they would not be able to buy off the second with a small payment - they are responsible for the whole amount.

Second - since you did not reaffirm, that is a powerful card in your hand. The bank will realize you can walk away and they will have yet another property to sell or auction if you choose to leave.

Third - you have to be willing to play hardball, or you can pretty much forget about forcing the bank's hand on an in-house modification. A federal modification is more likely, though a federal mod is also less likely to be the best long-term solution.

Now, all things change and there are always exceptions. But, one hard and fast rule is that banks and the feds don't like to do modifications unless they feel it is the best way to get their money over the long term. And, they generally don't feel like doing anything unless they are forced to do so because the other choice is a defaulted loan. The very best evidence that a loan will go to default is that it isn't getting paid. Hate to say it, but because your payments are faithfully on time, you are the bank's dream - unless you are late or missing a few payments, they have zero reason to consider your loan to be "at risk." In fact, the federal HAMP program pretty much requires that you are 2-3-4 months behind before you even qualify.

One big exception to that - if you DO get the bank to consider an in-house modification, it will often be a requirement that the loan is current and stays current during the modification process.

My recommendation - look for a Citi mortgage assistance branch - most major banks have opened an office in most major metro areas to assist homeowners during this crash. See if they are willing to do an in-house modification with you. There will be a pile of paperwork, as well as a necessary sob story as to how you cannot possibly keep the house unless they do something.

Should that fail, plan to apply for a HAMP mod somewhere down the line after not paying for a while. But be prepared for the fallout - you may have to pay up to keep the house if the mod does not work, or you turn it down, or...

Here's a thread that has a lot of good info in it: http://www.bkforum.com/showthread.ph...-Ch7-Discharge

That should get you started. Just remember to be very, very patient, because you will get the same paperwork to fill out again and again and again.

[SMinGA2]

First a refi and mod are 2 totally different things. Getting a refi shortly after a bankruptcy is pretty near impossible these days. Getting a mod will depend on the lender and your situation.

[cablebandit]

thanks. So we should first try an assistance branch or miss a few payments and THEN go to the branch? We will be banking every payment that we do not make so we can bring the loan current in the future if need be EXCEPT for any penalties/late fees. We are on the very edge of making our payments.

[dneil]

First a refi and mod are 2 totally different things. Getting a refi shortly after a bankruptcy is pretty near impossible these days. Getting a mod will depend on the lender and your situation.

Not true my dear. You can indeed get a refinance shortly after bankruptcy... well, if we are talking short being under 2 years. We are 1.5 years post bankruptcy and got 3.99% refinance on our home. We did not reaffirm and have never been late.