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loan mod/reaffirmation after chapt 7

Hello. We filed for chapt 7 and has since been discharged. We included our house, but because of our lawyers advice did not reaffirm the debt during the bankruptcy. We had to wait to submit our loan modification package until after the discharge date. Now that we are ready to go, the bank that has since purchased our loan is saying they will not stop the foreclosure procedings or process our request for loan mod without us signing a reaffirmation agreement. We are in California, the bank that purchased our loan is in Texas. Apparently, there is some difference from state to state about these laws. Our lawyer says that we should not be required to sign a reaff. in order to modify; That our BK is closed and that it's just not done in Cali. But the loan holder is stating that it is a requirement.

Needless to say, we are going crazy. Feel like we are stuck going in circles. Have 2 small children, desperate to keep OUR HOME. With the BK, paying the modified mortgage would not be a problem. It just doesn't make sense & we are running out of time. Do you have any feedback or advice? Please, please help. It is so very much appreciated.

Thank you. :shock:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You will not be able to modify your loan unless you've reaffirmed your mortgage. If you haven't reaffirmed the mortgage, that means you're not personally liable for the mortgage after your bankruptcy. If you are not liable for the mortgage, the lenders won't consider giving you a loan modification. Thus, in my opinion, you will have to reaffirm the mortgage with your lender and then apply for the modification of the loan.

Take care.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:10 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We too live in California and filed Chptr. 7 in 2008 and discharged in 2008. We applied for loan modification 3 weeks ago and were granted our wish. The bank has agreed to lower our payment, kick the loan to a 40 yr. term and deduct 135,000 yes (135K) from our loan. Oh, they gave us a fixed rate too. Nor did we have a reaffirmation agreement with the bank prior to the loan modification. So yes, you still can get a loan mod. without reaffirmation.
Susan

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:10 | Post subject:

andrew.ward.001's picture
andrew.ward.001 | Joined: August 28, 2009 07:50 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

it is strange to know that your lender has modified your loan without taking loan reaffirmation document signed by you.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:10 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I live in Arizona and my x-husband and I have filed BK7 and since then has been discharged. My x-husband has the family home and he wants to complete a modification. My name will not be removed during the modification. My question is if he completes a modification, will it reaffirm the debt making me liable for the loan?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:10 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Trish!

Welcome to forums!

Your ex-husband will be able to modify the loan only when he reaffirms the debt in his bankruptcy filing. If you reaffirm the debt as well, then you will also become personally liable for the debt. If you don't reaffirm the debt, then you will not be responsible for the payments.

Feel free to ask if you've further queries.

Sussane

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