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Timing of Loan Modifications
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Has anyone had any success with loan modfications before, during or after a
bankruptcy? Personally, I have not, though GMAC just today indicated that
once the BK is filed that they'll talk to one client in particular of mine.
_____
The post was migrated from Yahoo.
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FYI: Fed has encouraged mortgage mods during bk. Lenders are refusing.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
MARIA W. TAM
Sent: Friday, February 13, 2009 3:43 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Timing of Loan Modifications
I have a client who filed Chapter 7 four months ago. House has no equity.
The lender is Citimortgage. Client has always paid the mortgage payment on
time. Case is still pending. Client called Citimortgage two weeks ago and
ask for loan modification and Citimortgage said that they will not do loan
modification while a BK case is pending. We are going to sign a
reaffirmation agreement and will try to do loan modification after the case
is discharged. Has anyone out there try this route and are you successful?
On Wed, Feb 11, 2009 at 11:16 AM, Dennis McGoldrick wrote:
Loan Modifications:
Most banks are back to using the old standards to qualify people for home
loans.
Under the old standard, the debtor had to be solvent and the debtor had to
be spending less than 38% of the debtor's income on housing. (being solvent
(in my analysis) means able to pay debts as they come due)
If my clients are very insolvent (i.e. lots of credit card debt eating up
too much income, we file the 7 and get rid of the debt to facilitate the
mod.****
If my clients are otherwise solvent and facing a foreclosure, often due to
an interest rate adjustment, we get them to go straight to the bank and
request the loan mod before we file. If there is not time, sometimes these
people are stuck with a bk, but most of mine for the last 6 months or so,
clients have been granted extensions of foreclosure sales while the loan mod
is pending.
my $0.02
dennis
.**** In one such case, Alvin @ UST is moving to dismiss the 7, because the
debtor isn't making the house payments, pending the mod, so this can be a
complicated approach.
wrote:
The post was migrated from Yahoo.
I have a client who filed Chapter 7 four months ago. House has no equity.
The lender is Citimortgage. Client has always paid the mortgage payment on
time. Case is still pending. Client called Citimortgage two weeks ago and
ask for loan modification and Citimortgage said that they will not do loan
modification while a BK case is pending. We are going to sign a
reaffirmation agreement and will try to do loan modification after the case
is discharged. Has anyone out there try this route and are you successful?
On Wed, Feb 11, 2009 at 11:16 AM, Dennis McGoldrick wrote:
> Loan Modifications:
>
> Most banks are back to using the old standards to qualify people for home
> loans.
> Under the old standard, the debtor had to be solvent and the debtor had to
> be spending less than 38% of the debtor's income on housing. (being solvent
> (in my analysis) means able to pay debts as they come due)
>
> If my clients are very insolvent (i.e. lots of credit card debt eating up
> too much income, we file the 7 and get rid of the debt to facilitate the
> mod.****
>
> If my clients are otherwise solvent and facing a foreclosure, often due to
> an interest rate adjustment, we get them to go straight to the bank and
> request the loan mod before we file. If there is not time, sometimes these
> people are stuck with a bk, but most of mine for the last 6 months or so,
> clients have been granted extensions of foreclosure sales while the loan mod
> is pending.
>
> my $0.02
>
> dennis
>
> .**** In one such case, Alvin @ UST is moving to dismiss the 7, because the
> debtor isn't making the house payments, pending the mod, so this can be a
> complicated approach.
>
>
>
> --- On *Tue, 2/10/09, Mark JM * wrote:
>
> Subject: [cdcbaa] Timing of Loan Modifications
> To: cdcbaa@yahoogroups.com
> ate: Tuesday, February 10, 2009, 11:22 AM
>
> My question is this: Does it make a difference when the loan modification
> is sought and/or completed? Should the modification be completed and in
> place prior to filing the Chapter 7 case or is it better to do so after the
> petition is filed?
>
>
>
>
>
>
I have a client who filed Chapter 7 four months ago. House has no equity. The lender is Citimortgage. Client has always paid the mortgage payment on time. Case is still pending. Client called Citimortgage two weeks ago and ask for loan modification and Citimortgage said that they will not do loan modification while a BK case is pending. We are going to sign a reaffirmation agreement and will try to do loan modification after the case is discharged. Has anyone out there try this route and are you successful?
On Wed, Feb 11, 2009 at 11:16 AM, Dennis McGoldrick <easky1@yahoo.com> wrote:
Loan Modifications:Most banks are back to using the old standards to qualify people for home loans.Under the old standard, the debtor had to be solvent and the debtor had to be spending less than 38% of the debtor's income on housing. (being solvent (in my analysis) means able to pay debts as they come due)
If my clients are very insolvent (i.e. lots of credit card debt eating up too much income, we file the 7 and get rid of the debt to facilitate the mod.****If my clients are otherwise solvent and facing a foreclosure, often due to an interest rate adjustment, we get them to go straight to the bank and request the loan mod before we file. If there is not time, sometimes these people are stuck with a bk, but most of mine for the last 6 months or so, clients have been granted extensions of foreclosure sales while the loan mod is pending.
my $0.02dennis.**** In one such case, Alvin @ UST is moving to dismiss the 7, because the debtor isn't making the house payments, pending the mod, so this can be a complicated approach.
--- On Tue, 2/10/09, Mark JM <bklawr@yahoo.com> wrote:
lt;bklawr@yahoo.com>
Subject: [cdcbaa] Timing of Loan ModificationsTo: cdcbaa@yahoogroups.comate: Tuesday, February 10, 2009, 11:22 AM
My question is this: Does it make a difference when the loan modification is sought and/or completed? Should the modification be completed and in place prior to filing the Chapter 7 case or is it better to do so after the petition is filed?
The post was migrated from Yahoo.
Loan Modifications:
Most banks are back to using the old standards to qualify people for home loans.
Under the old standard, the debtor had to be solvent and the debtor had to be spending less than 38% of the debtor's income on housing. (being solvent (in my analysis) means able to pay debts as they come due)
If my clients are very insolvent (i.e. lots of credit card debt eating up too much income, we file the 7 and get rid of the debt to facilitate the mod.****
If my clients are otherwise solvent and facing a foreclosure, often due to an interest rate adjustment, we get them to go straight to the bank and request the loan mod before we file. If there is not time, sometimes these people are stuck with a bk, but most of mine for the last 6 months or so, clients have been granted extensions of foreclosure sales while the loan mod is pending.
my $0.02
dennis
.**** In one such case, Alvin @ UST is moving to dismiss the 7, because the debtor isn't making the house payments, pending the mod, so this can be a complicated approach.
Subject: [cdcbaa] Timing of Loan Modifications
To: cdcbaa@yahoogroups.com
ate: Tuesday, February 10, 2009, 11:22 AM
My question is this: Does it make a difference when
the loan modification is sought and/or completed? Should the
modification be completed and in place prior to filing the Chapter 7 case or is
it better to do so after the petition is filed?
,_.___
M
Loan Modifications:Most banks are back to using the old standards to qualify people for home loans.Under the old standard, the debtor had to be solvent and the debtor had to be spending less than 38% of the debtor's income on housing. (being solvent (in my analysis) means able to pay debts as they come due)If my clients are very insolvent (i.e. lots of credit card debt eating up too much income, we file the 7 and get rid of the debt to facilitate the mod.****If my clients are otherwise solvent and facing a foreclosure, often due to an interest rate adjustment, we get them to go straight to the bank and request the loan mod before we file. If there is not time, sometimes these people are stuck with a bk, but most of mine for the last 6 months or so, clients have been granted extensions of foreclosure sales while the loan mod is
the loan modification is sought and/or completed? Should the
modification be completed and in place prior to filing the Chapter 7 case or is
it better to do so after the petition is filed?
The post was migrated from Yahoo.
It's so hard to opine on this issue since the rules and requirements for
loan modifications seem to change every week and vary lender by lender, but
my limited experience has been that, assuming they can get through a Chapter
7 before the loan is foreclosed, the debtors are in a better position to
qualify for a loan modification (on a debt-to-income analysis) once their
unsecured debt has been discharged. Also, if the junior lien loans have
been discharged, those lenders would seem to have a greater incentive to
work with the debtor rather than get nothing when the senior lienholder
forecloses.
Jim
James R. Selth
Weintraub & Selth, APC
12121 Wilshire Boulevard, Suite 1300
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
_____
The post was migrated from Yahoo.
I have my own opinions on this, but wanted to see what others'
experiences/opinions are :
We all have clients who are in need of loan modifications, but who also need
to file Chapter 7 cases. Most of these situations involve real property
with no equity (or at least exempt equity).
My question is this: Does it make a difference when the loan modification
is sought and/or completed? Should the modification be completed and in
place prior to filing the Chapter 7 case or is it better to do so after the
petition is filed?
In my opinion, getting it done before works best because, for one thing, it
makes the debt dischargeable if it is a recourse loan, but there are a lot
of factors here to consider, not the least of which is whether it becomes
more difficult for them to be modified post-bankruptcy.
Would love to get input from the group on this..
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
Toll Free: 1-866-576-6275
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
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