Please, please help me understand this...we filed in Ch. 7 in Sept. and hired a separate atty. to negotiate our mortgage modification. We have a construction to perm loan with remodeling that has not been finished. We desperately want to keep the house and finish the addition in the future. The bank (BB&T) initially indicated that they wanted to work with us and asked us to sign a reaffirmation. Then they never sent it to the atty. They have been very slow and now we received our discharge (1/7)....this should be a happy occasion, but I got the following e-mail from our atty. this morning basically telling me that our hopes are gone for a modification.
Is this true? Can anyone offer experience or advice on this matter?
Here's the e-mail:
I had several conversations with BB&T and they indicated they would be willing to consider a loan modification but as you know we have not received any response. My last conversation with BB&T was their request for a reaffirmation which I requested (at least to review) and they did not provide the Reaffirmation. (This was in December)
I will not mislead you into believing you are not vulnerable to foreclosure but it makes no financial sense (nor did it) for BB&T to foreclose on your property as opposed to offering a loan modification. My concern is heightened now that your debt has been discharged. BB&T was aware through both my conversations with them as well as Mr. _____(bk atty's) filing of the petition that you were in bankruptcy. _______(the bk atty) emailed this morning that you cannot enter into a loan modification after a discharge but may be granted a new loan (although BB&T has no right to enforce the new loan). Basically, they would have an unenforceable debt secured against property--as opposed to an enforceable debt unsecured against the property.
You will not qualify for a new loan (as opposed to a loan modification) as far as I am aware. We need to discuss your options tomorrow. As I see it, we still have the short sale option but you would have to sell the property to a relative and have the property leased back to you. (Not an option as we have no relatives in a position to do this) BB&T may still offer a loan on the property but if they were unwilling to offer a loan modification while in BK I am not hopeful they will do it now. ______(the bk atty) was likely optimistic that you could keep the house as most lenders with whom I have worked will work with borrowers in BK to allow them to keep the house. BB&T does not have a formal loss mitigation plan in place to help borrowers. This is an anomaly in the industry.
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Please help us understand where to go next. We were told by all attys involved in September, no worries, you'll be able to keep it and probably get an interest only (3%) for three years. We have not made any payments, on attys advice, since August, but have not received any foreclosure paperwork from the bank. I feel we were forgotten and I'm angry, dismayed, and desperate.
Is this true? Can anyone offer experience or advice on this matter?
Here's the e-mail:
I had several conversations with BB&T and they indicated they would be willing to consider a loan modification but as you know we have not received any response. My last conversation with BB&T was their request for a reaffirmation which I requested (at least to review) and they did not provide the Reaffirmation. (This was in December)
I will not mislead you into believing you are not vulnerable to foreclosure but it makes no financial sense (nor did it) for BB&T to foreclose on your property as opposed to offering a loan modification. My concern is heightened now that your debt has been discharged. BB&T was aware through both my conversations with them as well as Mr. _____(bk atty's) filing of the petition that you were in bankruptcy. _______(the bk atty) emailed this morning that you cannot enter into a loan modification after a discharge but may be granted a new loan (although BB&T has no right to enforce the new loan). Basically, they would have an unenforceable debt secured against property--as opposed to an enforceable debt unsecured against the property.
You will not qualify for a new loan (as opposed to a loan modification) as far as I am aware. We need to discuss your options tomorrow. As I see it, we still have the short sale option but you would have to sell the property to a relative and have the property leased back to you. (Not an option as we have no relatives in a position to do this) BB&T may still offer a loan on the property but if they were unwilling to offer a loan modification while in BK I am not hopeful they will do it now. ______(the bk atty) was likely optimistic that you could keep the house as most lenders with whom I have worked will work with borrowers in BK to allow them to keep the house. BB&T does not have a formal loss mitigation plan in place to help borrowers. This is an anomaly in the industry.
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Please help us understand where to go next. We were told by all attys involved in September, no worries, you'll be able to keep it and probably get an interest only (3%) for three years. We have not made any payments, on attys advice, since August, but have not received any foreclosure paperwork from the bank. I feel we were forgotten and I'm angry, dismayed, and desperate.
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