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Must borrower disclose in loan mod app plans to file ch 7 bk?
Client told Chase that he was contemplating BK; Chase canceled his loan mod app. No official notice of denial. Any words of wisdom to get my Client back onthe loan mod track? W/o a loan mod, Client cannot afford a 13 to strip the 2nd and 3rd or cure the arrears on the 1st.
Bert Kawahara
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Alik:
It is generally better to tell the bank about the bk. If there is no bk, the debtor has to pay unsecured debt, and may not pass cash flow tests for a loan mod. After bk, there is more cash available to pay mortgage. We always tell the clients to inform the bank about the bk. We want the bank to consider the loan mod without reference to paying other debts.
dennis
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It happens all the time that people are submitting loan modification
applications while they contemplate filing chapter 7 bankruptcy. The banks
don't ask in loan mod app forms about borrower's plans to file bk. Some
mortgage servicer even suggest that borrowers get rid of unsecured debt in
chap 7 and then re-apply for a loan mod.
1. If the borrower is planning to file chapter 7 bk, must he disclose that
on his loan mod app?
2. Is it fraud if he does not?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
Cal. CD, Los Angeles
It happens all the time that people are submitting loan modification applications while they contemplate filing chapter 7 bankruptcy. The banks don
The post was migrated from Yahoo.