Tuesday, August 24, 2010

What is the loan modification with your mortgage while in Chapter 13 bankruptcty?

After filing Chapter 13 bankruptcy (mortgage included -fixed rate) my husband became unemployed, so we are now 6 months behind on our mortgage and our attorneys are submitting for a loan modification, what is the process? Is a loan modification always granted?What is the loan modification with your mortgage while in Chapter 13 bankruptcty?
no not always. If the lender and the trustee believe that you cannot honor the payment plan then they will take the home out of the bankruptcy filing by a motion from the lenders attorney and foreclose on your home. The worst thing is that he lost his job so how can you even pay the trustee the required payments unless you were on a short schedule and modify it to the full 5 yearsWhat is the loan modification with your mortgage while in Chapter 13 bankruptcty?
If the home is part of the Bankrupcty itself, the lender will be unable to modify as the home will be protected by the Bankruptcy court. It must be removed from the BK or the note reaffirmed. Learn more: www.cdalawcenter.com

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The most common ';modification'; is for the bank to allow you to miss 6 payments with no penalty. That money is added on to the balance of the loan..

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