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kopaenz · Joined: 19 Nov 2009 Posts: 3 1.87 Dollars($)

my 2 cousins and uncle have a mortgage together on their home. One cousin filed bankrupt 7 and my other cousin and uncle didn't. When he filed they moved out because they were 4 months behind in payments. Bank may be able to offer loan mod for uncle and other cousin. What happens to chapter 7 and cousin that filed it? Will he be in trouble and how can that chapter 7 affect the property or the loan mod?

sara · Posted: Fri Nov 20, 2009 2:01 am Post subject:

Hi kopaenz,

As the mortgage docs have the names of both the cousins as well as the uncle, the lender will have to offer the loan modification to three of them. All the 3 mortgage borrowers will have to sign the modification documents.

If the cousin files Chapter 7, the lender may not go ahead with the modification. He will stop the procedure and wait for the bankruptcy court's decision. Moreover, as per the trustee's discretion, the property can be sold off to pay off the creditors of the person filing the bankruptcy.

Take care

rita2 · Joined: 23 Apr 2010 Posts: 286 51.03 Dollars($)

Hi,

As the property is in the name of all three, the lender will have to offer modification to all three. In the mean time if any one files bankruptcy then the lender has to wait for the court's decision before approving the modification. As one of your cousin is planning for bankruptcy it will also effect your credit as the property is in the name of all three. Better you consult with a good lawyer.

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