Posted on: 04th May, 2010 04:12 pm
We received a Chapter 7 discharge 2/08 and had a loan modification approved late 2009. I am wondering if the loan modification affects our discharge. The house was included in the bankruptcy & we did not sign a reaffirmation agreement. Our Bank of America monthly statement includes verbage regarding the 'Impact of the Bankruptcy'. I would like to know for future reference in case we can't make the mortgage payment and if the house goes into foreclosure will we have to pay the difference of @120k?
Hi Guest,
I don't think that a loan modification will affect your bankruptcy filing in any way. As you did not reaffirm the mortgage, you are not personally liable for paying off the mortgage dues to the lender. If the property is foreclosed by the lender, you won't be liable for paying the deficient balance resulting from the sale of the property.
Thanks
I don't think that a loan modification will affect your bankruptcy filing in any way. As you did not reaffirm the mortgage, you are not personally liable for paying off the mortgage dues to the lender. If the property is foreclosed by the lender, you won't be liable for paying the deficient balance resulting from the sale of the property.
Thanks