Posted on: 16th Dec, 2010 07:04 am
I filed for Chapter 7 BK this year and it was discharged in 10/10. Included was a 1st and Equity loan 2nd, both with Wachovia. Both are listed as discharged in my current credit reports. They were listed in the BK with an intent to reaffirm because I was in a Loan Modification negotiation with Wachovia/Wells Fargo. I've now been in this negotiation for 73 weeks and have not paid on these this year. No reaffirmation has occured. No foreclosure has been started. I was current until advised by Wachovia to discontinue making payments in 01/10 so I would qualify for HAMP. I have been told by Wachovia separate times that I am BOTH under qualified and over qualified for HAMP, through the 73 weeks. The 1st is 134% of value ($110K). I am trying to get them to write-down the 1st and 2nd to 115% of market value and participate in HAMP. If they decline to mod the loan, how are the liens discharged? Can I expect separate foreclosure actions on the 1st and 2nd?
Hi djfrown,
As you haven't reaffirmed your mortgage, you're not personally liable for the mortgage dues. In that case, there are less chances that your lender will consider your request for a HAMP or any other kind of modification. If you do not get a modification and cannot pay off the dues on time, the lender will foreclose the property and recover his dues. However, he won't come after you in order to recover his deficient dues.
As you haven't reaffirmed your mortgage, you're not personally liable for the mortgage dues. In that case, there are less chances that your lender will consider your request for a HAMP or any other kind of modification. If you do not get a modification and cannot pay off the dues on time, the lender will foreclose the property and recover his dues. However, he won't come after you in order to recover his deficient dues.
Thanks, adonis. An update - the lender has offered reduction #'s of 5% loan, .5% term and 10% payment to re-affirm. I've countered with the HAMP reduction #'s of 19% loan, 1% term and 19% payment. I guess I can't lose to sit tight and see what happens. What do you think?
Hi Guest!
Welcome to forums!
You can discuss both the plans with your bankruptcy attorney and take the right decision. The payment plan that you are receiving after reaffirmation is good in my opinion and you may go for it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can discuss both the plans with your bankruptcy attorney and take the right decision. The payment plan that you are receiving after reaffirmation is good in my opinion and you may go for it.
Feel free to ask if you've further queries.
Sussane
Thanks to all for the explanations. They were helpful. Loan Mod was approved by Wachovia/Wells Fargo. Took almost 2 years to complete. Credit went down, but it was mitigated by the bankruptcy. They setteled with a 2% loan over 37 years at 40% of my previous payment and a 40% reduction in principal. This worked for me.