Modification after bankruptcy questions

[helpme2010]

So, I checked out what rentals were out there, and it was a surprise to me. Basically, something just $200 cheaper than what we're paying now gets you trashed homes. The rentals appear to be basically homes that have been empty or something because of failed foreclosures or whatnot. I guess decently kept properties have the same rent cost as our current mortgage payment, or even higher but at 1,000 less square feet of living space, too. It's pretty crazy.

When I checked zillow, you can mask out homes for sale vs homes for rent.. you can see the huge issue with the real estate market. There are tons and tons of homes for sale (mostly probably short sales). And only a fraction of homes for rent. Obviously, there's huge demand for rentals.

Now, with the auction sale in about 4 weeks, I called the lawyer representing CitiMortgage and asked if it's too late to try a loan mod. They said it's not too late. I mailed in all the docs they were asking for. We'll see how it goes.

It was already answered I think, but our biggest fear is making sure that if it's a "loan mod", that the original loan discharge still applies. Because, it's nice to still have that option to leave at some point in the future.

I am in a similar boat. I also asked this of my attorney. With a loan mod you are not reobligated to the home loan, so you can walk away in the middle of your loan mod and foreclosure will just move forward. However, I and you should still read over the loan mod agreement carefully just to make sure they don't slip in some language making you obligated for the new loan.

You are running pretty late for the loan mod to take place, but I recommend you call your mortgage company and ask them to accelerate the loan modification review process if possible. My mortgage company did that for me. Since the whole process can take easily a couple months to go through. You might be able to get them to hold off on the auction date or temporarily hold the foreclosure while they review your docs as well.

I sent mine in a few weeks ago and am waiting and hoping they will give me some type of loan mod plan.

I am planning on moving to another area closer to jobs and family, so the rent will be closer to my mortgage amount, but I will save half the drive time to jobs and gas. That can add up to an hour drive time a day, plus less gas and less stress.

[CCsAreEvil]

So, I checked out what rentals were out there, and it was a surprise to me. Basically, something just $200 cheaper than what we're paying now gets you trashed homes. The rentals appear to be basically homes that have been empty or something because of failed foreclosures or whatnot. I guess decently kept properties have the same rent cost as our current mortgage payment, or even higher but at 1,000 less square feet of living space, too. It's pretty crazy.

When I checked zillow, you can mask out homes for sale vs homes for rent.. you can see the huge issue with the real estate market. There are tons and tons of homes for sale (mostly probably short sales). And only a fraction of homes for rent. Obviously, there's huge demand for rentals.

Now, with the auction sale in about 4 weeks, I called the lawyer representing CitiMortgage and asked if it's too late to try a loan mod. They said it's not too late. I mailed in all the docs they were asking for. We'll see how it goes.

It was already answered I think, but our biggest fear is making sure that if it's a "loan mod", that the original loan discharge still applies. Because, it's nice to still have that option to leave at some point in the future.

[espo1357]

I have been approved for the modification. All I need is court approval. What forms are they talking about

Some service companies have a financial form that you need to fill out, they want your living expenses....

The more I think about it, the more I can't wait for them to take this home. Although, the free rent is going to be fun for the next year or 2 or 3...

[Gonzalesj]

I have been approved for the modification. All I need is court approval. What forms are they talking about

[espo1357]

I too am in Chapter 13 CA. My case has been confirmed. I have 4 years left. BOFA called me out of the blue offering me a loan modification. I signed the notarized papers and sent everything back... However I was told the court needed to approve the modification. I called my attorney and told him. He said the court will not approve a modification. They will allow us to modify the loan though. So I paid him 600 more dollars and he was suppose to take care of it. As of today nothing has been done. He does not know what paperwork the bank wants since my plan has been confirmed. The loan modifier will not return our calls. The Deadline is 3/1/2011 to have the court paperwork in. ANy ideas... What forms do they want?

You could do the modification on your own.

They usually need a hardship letter, tax returns, pay stubs, bank statements, financial statement on their form, and that should be it.

Your lawyer seems to be charging you for something you don't need his help for, all you have to do is have the lawyer send a note/letter to your mortage company, indicating the right to speak to you regarding the modification.

I would be over 100 percent sure you want the home before moving forward.

I was in a situation where I could have filed for a 7 over a year ago, but decided to keep the home, and now I am in a 13, and don't see any light with this property.

Good luck.

[Gonzalesj]

I too am in Chapter 13 CA. My case has been confirmed. I have 4 years left. BOFA called me out of the blue offering me a loan modification. I signed the notarized papers and sent everything back... However I was told the court needed to approve the modification. I called my attorney and told him. He said the court will not approve a modification. They will allow us to modify the loan though. So I paid him 600 more dollars and he was suppose to take care of it. As of today nothing has been done. He does not know what paperwork the bank wants since my plan has been confirmed. The loan modifier will not return our calls. The Deadline is 3/1/2011 to have the court paperwork in. ANy ideas... What forms do they want?

[willsurvive]

No we did not have to reaffirm this mortgage (nor would we have). Thanks and good luck everyone

[ceri]

To willsurvive,

Thanks for sharing your story. Did you have to reaffirm the mortgage with B of A during Chapter 7 bankruptcy?

[martha]

Final loan agreement

I want to thank to everyone in this forum for all the support given to all of us posting here.
I went through a lot of suffering with Chase bank but after I kept on calling to Chase and standing on my grounds and seeked for help and support from friends, we obtain the "Final Loan Agreement".
Having the first package signed by Chase April of 2010 and us for our "Permanent Loan Agreement" and been told by them time and time again that our request for a "Loan Modification Agreement" was denied, also they sent to us "Acceleration Warning of intent to for closure", we went trough all kind of meanness from their side.
I have to communicate to all the good news, they sent to us "The Final Loan Agreement", it became final on Nov 2010.
The monthly payment went up( that is not good news) I know, Chase also added the escrow and the interest came down from 5.89% interest from the original loan and also never came down like it was suppose as specified in our second "Modified Loan Agreement" which accordingly to Chase the interest was 3.75%.
Our payment is now $ 1800 at 2% interest. ( Still very high for us but we are making it somehow).
We realize that we will have to sale our dream house for a much smaller house but we will have to do just that so we can live free of worries.
This "Agreement is good for 5 years for 2% interest and then increases gradually over a period of time until you pay the full loan.
Chase play sick games but you have to have support from friends and family and seek for advices from good folks like these found in this forum if you want to remain sane.
Remain hopeful and no matter what is the outcome for many good people seeking for a work out plan on how to come to an agreement with you respective banks.
We say in Spanish something like this, " When one door closes behind you, other will open.

[Rico07]

Modify before BK if possible

Any luck with your MOD? I am filing Chapter 7 in about a week. The house is in foreclosure now but a sale date has not been set yet. I was thinking about contacting BofA after filing and looking into getting a MOD any suggestions?

You might consider holding off on BK if you can until the modification is in place. I know with HAMP they cannot foreclose while you are in the process. I don't know about an "in house" as all terms are according to the individual bank. Chapter 7 does not help if you are in arrears. As soon as the stay is lifted they can begin the foreclosure process again. If you are looking to save your home modify first then file. JET

[SetMeFree]

Willsurvive....When did you file your bankruptcy? I am trying to figure out the best time to file.

[CCsAreEvil]

Interesting. Received a letter from CitiMortgage stating they are trying to keep people in their homes. They claim they will be contacting us soon about a loan MOD (post-BK). A separate letter sent about 2 weeks earlier said they were going to accelerate foreclosure if we did not bring payment up to date from around Aug/Sept (like that was going to happen). We'll see what happens. I guess we'll go through with the mod loan process. Worst case is probably delaying the foreclosure process to let us squeeze in some extra time before we have to leave.

[SetMeFree]

Any luck with your MOD? I am filing Chapter 7 in about a week. The house is in foreclosure now but a sale date has not been set yet. I was thinking about contacting BofA after filing and looking into getting a MOD any suggestions?

[willsurvive]

If you did not file bankruptcy, then the Modification after bankruptcy disclosure rider is irrelevant and you will not need it. I wouldn't worry about it at this point. No, I have never received a signed agreement from BAC (though I wish I had). Honestly, I don't think we'll ever see it, and if I called for it I would get a big run around and cause myself more stress. I'm not going to worry about it. I really think that having the account look correct online, and the statements showing up is enough for me to move on with my life and consider it a done deal. To each is own though.

This is definitely not a HAMP, but an in house mod we received.

Again, good luck

[qnguyen]

Congrats! I feel pretty much happy for you guys and am in great hope to have a happy ending just like you. I did sign/date the agreement, notarize all 2 sets and return the package to BAC last Friday. I called BAC and asked for the Disclosure Rider and was explained that we don't need the form since we had never filed Bankcruptcy. Anyway, I mannaged to reproduce the form based on online samples, signed them and sent them back. I did make copy of all the docs sent as you sugggested (thank you!); and will do so too with our new monthly payments.

About the Loan Mod Agreement and the Disclosure Rider, did you eventually receive a copy of those with BAC signatures? I don't think it worth at all if only we signed and that we keep no copies with BAC signatures on. Have the new payment correctly shown up on the account and in the statement is really great, but I would feel secured and could rest easy only after I receive the docs with their signatures on. They are the only legal proofs we would have for any future incidents.

Last question: Is your mod HAMP or BAC in-house? We were denied from HAMP and then offered their in house mod. Were you in the same situation?

Thanks again for your infor and advise.