Posted on: 27th Aug, 2009 08:45 pm
my husband and i are in the middle of getting loan modifications on both of our two mortgages. we lost a business in 2006 and filed a chapter 7 bankruptcy. it was discharged in 5/07. we had such a loss of income from the loss of our business and including losing all of our savings. then when my husband was hired for a new job he was let go from his job just short of the year marker. he has since been rehired. during all of this we have tried to get loan modifications on both of our loans. we have not reaffirmed either loan. and both loans are with the same bank.
this month after months of working with the bank, we were able to get a loan modification approved on the 1st mortgage and have started with the new payments for a 3 month trial period. we are relieved.
now, the mortgage company still wants us to pay a full payment on our 2nd while they continue to review and try to find a plan for our 2nd mortgage. this month they told us if we don't pay a full payment that the mortgage will be charged off. we feel if we try to pay this 2nd mortgage this month we will have nothing to fall back on. and on top of that if they are not done completing the modification on the 2nd mortgage this next month they will once again expect full payment and we will definitely not have it next month as we will be paying our 1st new mortgage amount and need to stay current with that.
our question is since we have had a bankruptcy, what is the best thing for us to do. would having the 2nd mortgage charged off actually help us (are their loan modifications available from the company who takes over the loan?) or should we just try to borrow from family to keep the 2nd current while we are waiting to get a loan modification? can they take the house if we are paying on our 1st and have had a bankruptcy? is there ever a time that the 2nd mortgage can be let go of like in the bankruptcy with our other bills that were discharged. if the loan is charged off does that happen, that we don't have to pay the loan back at all? we don't know how to handle this as far as what is the best way for us to go.
this month after months of working with the bank, we were able to get a loan modification approved on the 1st mortgage and have started with the new payments for a 3 month trial period. we are relieved.
now, the mortgage company still wants us to pay a full payment on our 2nd while they continue to review and try to find a plan for our 2nd mortgage. this month they told us if we don't pay a full payment that the mortgage will be charged off. we feel if we try to pay this 2nd mortgage this month we will have nothing to fall back on. and on top of that if they are not done completing the modification on the 2nd mortgage this next month they will once again expect full payment and we will definitely not have it next month as we will be paying our 1st new mortgage amount and need to stay current with that.
our question is since we have had a bankruptcy, what is the best thing for us to do. would having the 2nd mortgage charged off actually help us (are their loan modifications available from the company who takes over the loan?) or should we just try to borrow from family to keep the 2nd current while we are waiting to get a loan modification? can they take the house if we are paying on our 1st and have had a bankruptcy? is there ever a time that the 2nd mortgage can be let go of like in the bankruptcy with our other bills that were discharged. if the loan is charged off does that happen, that we don't have to pay the loan back at all? we don't know how to handle this as far as what is the best way for us to go.
hi sa,
you've mentioned that you filed for bankruptcy and did not reaffirm the debts. in such a situation, you are not personally liable for the mortgage dues. it is surprising to me that your first loan was modified by the lender. generally lenders do not modify the loan if you haven't reaffirmed your debts after bankruptcy.
if the lender charges off the second mortgage, then it would help you in any way. charge off does not mean that your mortgage has been forgiven. it only means that a collection agency will try to collect the dues from you. you should negotiate with your lender and try to convince him for a payment plan until he modifies the loan.
you've mentioned that you filed for bankruptcy and did not reaffirm the debts. in such a situation, you are not personally liable for the mortgage dues. it is surprising to me that your first loan was modified by the lender. generally lenders do not modify the loan if you haven't reaffirmed your debts after bankruptcy.
if the lender charges off the second mortgage, then it would help you in any way. charge off does not mean that your mortgage has been forgiven. it only means that a collection agency will try to collect the dues from you. you should negotiate with your lender and try to convince him for a payment plan until he modifies the loan.