taz007

Bumping for you. Seems like I am following in your footsteps ...

I spoke to my BK attorney and she told me that Congress blocked the ability for BK judges to cram down a modification. She also mentioned that cram downs are only available for a Chapter 13. I filed a Chapter 7.

Ok, it is official. I am DENIED!! They said the reason why I was denied is due to insufficient income (duh, that is why I need the modification). So, I have just submitted an application with NACA and will be attending a workshop (300 miles away !) in two weeks. NACA is my last hope. Does anyone have any additional ideas/resources?

My servicer/lender is Chase. I actually received the home modification paperwork today (although I faxed them the necessary docs last week). My bk has yet to be dismissed. In fact, Chase filed a motion to lift the stay which will be heard on October 15. I had my attorney file an answer just in case I am denied the modification and they are using the HAMP guidelines as a reason to dismiss. I did this so that I will have more time to come up with the cash. You are correct. I had the original modification trial period and then filed BK. Now I have to go through this again. I hope that they give me another 3 months with the reduced payments. By then, if required, I will have the cash if I am denied. I just want to know what those that got denied had to do in order to keep their homes.

What happens after a loan modification has been denied? I was 6 months behind on my mortgage when I got pre-qualified for HAMP. I paid the modified payments for the 3 month trial period, on time. I filed Chapter 7 and had to modification process start all over again. I would like to be prepared so I am asking if anyone had their modification denied, what happened next? Will I have to come up with the entire 7 months past due ($21000+)? Or has/will the bank apply the past due to the end of the loan and allow me to continue to make the original payments? I hope that this makes sense...

Any updates??

Taz, I came to the boards to relate our experiences and immediately stumbled on your question. Our case is a little different from the norm as you will see, but it can be done. I am married, but filed a Chapter 7 without my wife in June just before the auction date. About a month ago the lender requested and was granted relief from the stay and a new auction was set for late next week. Last week I received a letter from the lender requesting updated financial information and asking that I call if we want to try to work something out. When I called, I was granted a forbearance of 6 months with nothing required upfront and a payment of 50% of the contract amount. The lender (Aurora) indicated that they would send out a form after two payments are received to work on a permanent modification which would be dealt with at the end of the forbearance in March. Again, our situation is different as only one of us filed the Ch7, but it has been me that they are dealing with and they haven't even mentioned the BK in our discussions. Good luck! LGO Thank you, thank you, thank you!! I am married yet the house is only in my name and I am the only one that filed Chapter 7! When you say 50% of the contract amount is that the amount that you were past due?

I'm glad that I wasn't wrong. This is what I was told too. My friend is talking to the first mortgage AND the second mortgage co. They are talking to her. I told her today to be careful!!!! If you reaffirm(sp), then she's back on the hook. But her loan is a unique animal. It involves fraud on the lender's part. I just hope that she can come to terms with this. It bothered her sooooooooooo much that she had a heart attack. I posted about this months ago. We talked about whether it was worth the stress or not. If you cannot deal with the stress of the situation, just let it go. It's just material possessions and those come and go, ya know? One can always buy another house down the road. I remember when I lost my house. I cried...slinging snot cried. It was aweful. That was a few years ago. I ordered socks for my girls' cheer team for Cheer for a Cure back in March and Paypal (don't even get me started ) kept referring back to my old address even though I had updated it numerous times. -The adress for the house that I lost. They shipped the socks for the whole cheer team to my old house. Talk about embarrassing. The bank branch manager in the next town bought my house. We knew each other. But her family was really nice and held my socks for the team and I got them. But my point is that when I went back to the house ( I hadn't even driven by it after I moved out), walked up to the door etc., it really hit me. It was just a house. A material possession. I had my family and my health. That's what truly matters. And that's the most important thing. Your family. It doesn't really matter where you live, your still a family. If your house is something that you are willing to fight for? Great. But you must be able to accept the bad with the good and realize that you may not win. If you cannot deal with the stress then IMHO, I'd let it go. You are already off the hook with the BK. Renting isn't so bad. Just think...when something breaks, you can call the landlord and they'll foot the bill. Just trying to be lighthearted........ Just to say that I'm no expert. When I lost my house there weren't any loan modification deals or anything floating around. But let's face it. Few are getting these loan mod's anyways. It's kind of a sick joke. How many success stories have you read? Wow. Thank you so much for saying this. Brand new perspective!

Hmm, not sure if this is correct. I found this information (Announcement 09-05R - Home Affordable Modification Program faqs) which states: Q13. If the borrower files for bankruptcy protection during the Trial Period, is the Trial Period Plan canceled automatically or is a servicer required to continue to work with the borrower? Borrowers who file bankruptcy during the trial period, but who make all of the required payments in a timely fashion and are otherwise in compliance with the Trial Period Plan remain eligible for a modification provided all of the representations in section 1 of the trial plan remain true. The servicer and its bankruptcy counsel must work with the borrower and the borrower's bankruptcy counsel to obtain any required court approvals of the modification. A borrower actively involved in a bankruptcy proceeding prior to being placed in the HAMP is eligible for the HAMP at the Servicer’s discretion. If a servicer provides an offer under the HAMP to a borrower that is involved in an active bankruptcy case, the servicer must work with the borrower or borrower’s counsel to obtain all necessary approvals from the bankruptcy court. I sent this to my BK attorney and he said that I definitely have a strong case. He is filing an answer against the stay motion next week. I hope that this will buy me some more time. Now my question is if stay is lifted, how long do I have? I have not paid my mortgage since February, they filed a notice of default in June. I had my 341 hearing in September and the lift of stay hearing is on October 15th.

I have been doing a home modification with Chase since August. They have all of the necessary paperwork and I have made the August and September payments on time and was ready to make the October payment. I called Chase two days ago and they said that the modification process is going as planned. I just attended my 341 hearing today with no issues. However, I received an email from my attorney today stating that Chase's attorney has: 1) Filed a petition to remove the stay on foreclosure (I am 5 months behind on my payments before the modification process) 2) They are returning my September payment and want the full amount The reason why I filed Chapter 7 is so that I can make sure that I have more money going towards my mortgage. Has anyone successfully filed Chapter 7 and did a successful loan modification? Any words of wisdom?

Ok. I just found out that the lenders have actually filed a Notice of Default on June 2nd. What do I do now and how much time do I have? (See previous post)

Sorry for the hijack but ... I am so glad that you posted this as I am in the EXACT same situation. I only have a first mortgage that is 5 months behind and to get current, I have to pay $15,000. I just got my foreclosure letter, from a law firm, stating that I have to pay the entire amount of the mortgage, $450,000+ Is this right? Do I have to pay the entire loan amount? My husband was laid off 6 months ago and my business has been extremely slow for the last 6 months. I will be filing Chapter 7 on July 1st (paperwork is already done, just need to pay fees). Business is now picking up fast, and my husband got some training and will be bringing in some really good money starting in August. I will be able to pay the entire amount past due by July 20th. So I have a couple of questions: 1) Do I have to pay the entire loan amount or can I just pay the past due? 2) Since the lenders have retained an attorney, about how much in fees should I expect to pay in addition to the past due amount? I am just like twinkletoz. My name is Taz and I am an avoider.