Question Concerning Modification after BK7 Discharge

[smithma]

I have a question, I just filed Chapter 7 BK paperwork is still being finalized but should be filed within the next few days. I have a VA Home Loan that is not yet in foreclosure however I have been sent paperwork. My attorney says it's best to seek modification after the BK discharge. I see no threads on VA Home Loans being successfully modified after BK so just curious as what my chances of approval will be. I know no one knows for sure because its all paperwork but any insight would be great. Mortgage servicer is Nationstar even though they sent a letter saying they sold the loan the calls still come from them and they still service the loan. Everything I read says do not reaffirm the mortgage during the BK. I will be 9 months of no payments by the time I file. Thanks in advance for any input.

[Kuuner]

no issue applying for mod before or after BK. Won't work while IN bk but either before or after it makes no difference. If Nationstar sold it but still services it, yeah, they'll be the one making the calls.

 

Everything you read is correct. Do NOT reaffirm. Also, if you file a 7, you have VERY little time after the BK to get your mod done. Chances are they will either move for relief of stay or, pick up where they left off and go to sale immediately after your discharge. That's a cat and mouse game I would not want to play. Chapter 7 does NOTHING to buy you time whereas a 13 will, if they already filed the foreclosure notice.

 

My personal two cents would be to apply for the mod now. That puts the foreclosure on hold by law for 30 days minimum. if you are 9 months down, chances are they are getting close to sale date if they already filed the first legal notice. (The NOD...Notice of Default).

[smithma]

Thanks for responding we have notified the lender as the bankruptcy has been filed so everything stops for now. Working on modification paperwork to file same day as discharge. If it works fine if not hey can't say we didn't try. The good thing is they have worked with Disabled Veterans in the past to ensure the modification went through (my attorney) hopefully it will work. Again thanks for your input, it's a wait and see and in FL it's a slow process so hopefully all will work out. Just had a friend it took 2 years from the NOD to foreclose and seem to be the norm.