Hi! I have a dear friend who came to me for help, but I've not any experience with loan modifications, so hoped you all could help me out! I've done quite a bit of reading here on the topic, but can't seem to find a case quite like hers...
My friend and her hubby have a mortgage that was not reaffirmed in their BK in Nov 2009, although they have continued to make payments and have kept the home. Hubby injured his knee and had to have surgery. He is self employed and missed about a month of work. They had been doing ok up until this point, although living paycheck to paycheck with no $$ to cover that month and they fell behind. They are currently 2 months behind on their mortgage. She's called Chase, but for payment arrangements, they want more per month than they can pay. They send her a loan mod packet, which she filled out and returned last week, hasn't heard anything yet.
Her question is: How does a loan mod work on a house included in BK? Does taking the modification reaffirm the debt on the property? Will they automatically deny it because the note was IIBK?
I believe this is an in house mod from what I've reading? She hasn't applied for HAMP or anything like that, simply a few mod forms from Chase. How does this process work?
Thanks for any help you can give her!
No a Loan Mod will not reaffirm thier property. There should be language in there confirming that. And yes assuming the qualify they can get a loan mod on a BK property.
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I've been told the in home mod's will be denied if not reaffirmed, but the HAMP ones cannot be denied due to not reaffirming or iib. Tell them to try for the HAMP mod.
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That may depend on the investor (not the bank) but I know for a fact Loans CAN BE Modified (outside of HAMP) after a BK.
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That was a great article, thanks for posting it. I was told by a rep at PNC the investor would not modify our loan without reaffirmation. I'm sure they are told to say that so homeowners go ahead and reaffirm, but my attorney was very addiment about NOT REAFFIRMING! So I listened, I just hope we can work out something with a loan mod. That article gives me a little hope now:) thanks.
That may depend on the investor (not the bank) but I know for a fact Loans CAN BE Modified (outside of HAMP) after a BK.
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Must be an old article; it mentions ability to refi a mtg 2 yrs after Bk.
Now, and for the past yr or two, it has been 3 yrs seasoning after Bk to qualify for a mtg.
Not challenging the main message of the article, just commenting on the probability of when it was written, or the author was ill informed.
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Must be an old article; it mentions ability to refi a mtg 2 yrs after Bk.
Now, and for the past yr or two, it has been 3 yrs seasoning after Bk to qualify for a mtg.
Not challenging the main message of the article, just commenting on the probability of when it was written, or the author was ill informed.
You are correct not sure when it was writtend and just gave it as one source of evidence. But I do know that a loan can be modified after BK that part hasn't changed.
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You guys are awesome! Thanks!