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.