Mortgage Modification Questions.

[tripbuddy]

I think my situation sounds very similar. Paid & stayed for a year after ch7. Then stopped paying. Tried getting a mod but lots of paperwork "glitches." Finally, in pre foreclosure paperwork, there was an option to ask the court for mediation.

Hired my bk atty back, asking her to pursue that for us. One meeting later between atty & mediator, and we got our mod. But in the meantime, the mortgage co got their foreclosure. Next step= sheriff auction I think. AND they had me added somehow thru the courts to the mortgage, since i was on the deed. ???

Anyway, we did the 3 trial payments the got permanent modification paperwork to sign. I can't get in to my atty to have her lookit over before its due back to the mortgage co, they only gave a few days! The cover letter says if this was discharged in ch7, this will not reaffirm the loan.

However, our ch 7 went through with just my husband listed on the mortgage, I was added afterward. Am I liable now? Also, despite what the letter states, nowhere in the actual modification docs that we actually sign does it state it's not a reaffirmation. Should I worry?

So, there are 2 issues I think. One: am I now on the hook for the mortgage since I didn't have it in my debts on my bk, just dh? And two: does signing the modification put us back on the hook?

I think if we don't send the signed & notarized docs back, the mortgage co will proceed quickly. They already have their judgment or whatever. Scary, when we just want to pay and stay till we find a rental. Hard to find right now, around here.

[LadyInTheRed]

Hi, tripbuddy. I moved your post to its own thread where it will likely be read more more people.

I can't get in to my atty to have her lookit over before its due back to the mortgage co, they only gave a few days!

So, fax or email the letter and agreement to your attorney and call to talk about it. You need your attorney's advice on this.

The cover letter says if this was discharged in ch7, this will not reaffirm the loan. However, our ch 7 went through with just my husband listed on the mortgage, I was added afterward. Am I liable now? Also, despite what the letter states, nowhere in the actual modification docs that we actually sign does it state it's not a reaffirmation. Should I worry?

The fact that it doesn't say it's not a reaffirmation is irrelevant. A debt can only be reaffirmed during your BK. A discharged debt cannot be reaffirmed regardless of what a modification agreement might say. So, your husband won't have a problem. But, if you somehow became personally obligated to pay the debt after you filed BK, I don't know the consequences for you. You don't seem to understand how you became liable on the debt. Maybe you already were liable before you filed BK, but some court document simply confirmed that fact. I'm just guessing. You need to talk to your attorney.

So, there are 2 issues I think. One: am I now on the hook for the mortgage since I didn't have it in my debts on my bk, just dh? And two: does signing the modification put us back on the hook?

As long as it is a modification and not a refi, the modification won't change who is or is not personally liable to pay the debt.

[tripbuddy]

LITR, thanks.i had a ton of trouble getting my reply to post and since it was very similar to that op's situation, i left it as a reply.

I found my foreclosure docs. It says that I am a defendant because I may claim an interest in the property (as a titleholder).

It goes on to state that due to a scriveners error, the mortgage doesn't set forth in the granting clause/acknowledgment that we are husband and wife. Therefore they had the court reform the mortgage to reflect that we are husband and wife. No clue what that means legally, here in ohio. This was all filed in may 2012. Our ch7 was discharged for a year before that. Maybe that paper doesn't even mean anything, no idea.

Since its the weekend, I will contact my atty tomorrow and hope she can squeeze us in.

As for the mod terms, since others may be minute interested in whats being offered:

Pnc increased the payments a bit from the trial payments, about $75 more/month.
They lowered the interest rate almost 2%.
We had 24 yrs left, this added all past due payments and legal fees to the end AND made our 30 yr note into a 40 year one. Accrued interest of almost $11k is being added in, as well as almost $5k in legal fees. In addition to fully funding escrow as well. This adds about $20k to our loan.

With a shortage of suitable rentals nearby, we feel compelled to sign and pay till we find one where else to go. Gosh I was hoping to find something during our trial mod, so we wouldn't have signed anything. At this point in the game, I always feel like someone's trying to trick us. I've read this mod several times, and I don't see anything alarming in it but if I'd been less trusting, we'd have never bought this piece of crap money-eating house in the first place.

Our entire reason to bk was to get rd of this house, and I'd just hate to sign something that made us stuck with it again.

[knitty]

Any word from your attorney about this? I hope you hold out for a better deal, unless you REALLY want to stay in this house for a while! Sounded like you wanted to get rid of the house in the bk...Good luck to you