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after Ch7. Loan Modification falls through. Foreclosure

Posted on: 29th Sep, 2010 10:55 pm
My parents have lived in their house for over 10 years now. They proceeded with Chapter 7, but did not include the house in the filing. They agreed to a loan modification through Citibank and thus brought down their payment to an amount where they could afford payments. The bank just notified them (almost 1 year later) that their loan modification was denied, after they have made a year worth of "modified" payments. Now, if they force the bank to foreclose, can they stay in the house payment free until that goes through? They should be able to save up some of that money that the bank squeezed them out of in the past year of "modified" payments. What can the bank do to them?

Thanks
Hi Patty,

The lender will foreclose the property if your parents do not pay their mortgage payments for the next 3 months. Unless their property is foreclosed by the lender, they will be able to stay in it. After the property is foreclosed by the lender, he will send you an eviction notice. The time period to leave the property will be mentioned in this notice. Normally, the lenders give 3 days time to leave the property.

Thanks,

Jerry
Posted on: 30th Sep, 2010 04:48 am
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