Posted on: 22nd Sep, 2010 08:32 am
hello,
my wife and i are considering to declare bankruptcy as a result of a loss of more than 50% in income since last year while being self employed. am i less likely to be approved for a loan modification, although i've been current with my mortage. next year it will increase by $800.
second, am i better off applying for the loan mod. myself or would it be better for the attorney, who will be working with us for the banckruptcy, to pursue the loan mod. for us. would the attornery be considered the servicer and would the attorney be compensated by through the modification program or are we the ones that end up paying the attorney on the back end?
finally, do we need to show that we have enough in savings to pay the current mortgage for the next 3 - 6 months?
my wife and i are considering to declare bankruptcy as a result of a loss of more than 50% in income since last year while being self employed. am i less likely to be approved for a loan modification, although i've been current with my mortage. next year it will increase by $800.
second, am i better off applying for the loan mod. myself or would it be better for the attorney, who will be working with us for the banckruptcy, to pursue the loan mod. for us. would the attornery be considered the servicer and would the attorney be compensated by through the modification program or are we the ones that end up paying the attorney on the back end?
finally, do we need to show that we have enough in savings to pay the current mortgage for the next 3 - 6 months?
Hi vincent,
If you've already filed bankruptcy, then you won't be able to qualify for a loan modification. The lender will stop all actions against your loan account as the bankruptcy court will issue an automatic stay in this regard. If you want to file bankruptcy, you should directly negotiate with the lender rather than taking the help of a law firm. You may not be able to get a mortgage modification if you can prove that you will be able to pay the current mortgage for the next 3-6 months.
If you've already filed bankruptcy, then you won't be able to qualify for a loan modification. The lender will stop all actions against your loan account as the bankruptcy court will issue an automatic stay in this regard. If you want to file bankruptcy, you should directly negotiate with the lender rather than taking the help of a law firm. You may not be able to get a mortgage modification if you can prove that you will be able to pay the current mortgage for the next 3-6 months.
I have to apologize for the mess of typo's above! I was typing without being able to see the text! In reference to the comment about highly specialized field - in addition to patience and common sence, a modification specialist speaks the same language and knows what the lender is lokking for, knows when to make a fuss because its taking to long, knows when to hang up and call back to speak to someone else etc. The borrower tends to be to emotional and listens to everything the bank has to say. The bank is not there for you If they were, really, they would have reached out to you when they got all the stimulus money to help you. Insted they will call and harass you looking for their payment and won't help until you come to them. They really want to help.