Posted on: 05th Apr, 2010 05:08 am
My husband and I are separated (4 months) and getting a divorce. He has declared bankruptcy, but I haven't. My home is going into foreclosure but I would like to try to keep it. When we last applied for a loan modification, his income was included because we are not yet divorced. I couldn't afford the payments they proposed. Now that he has declared bankruptcy do you think the bank will modify the loan based on my income only? I am the only one living in the house and he doesn't want anything to do with it. (hence the bankruptcy I guess!)
The loan modification process is time consuming and detailed. I guess I'm just wondering if its worth it to try again......since the divorce hasn't even been filed yet.
Thanks for any advice! Lanie79
The loan modification process is time consuming and detailed. I guess I'm just wondering if its worth it to try again......since the divorce hasn't even been filed yet.
Thanks for any advice! Lanie79
Hi Lanie,
Since your husband has filed bankruptcy, the lender will now use only your income to determine if you qualify for the loan modification. Once your husband gets discharged through bankruptcy, he will not be responsible for the mortgage. This is why the lender would not include his income while determining your eligibility for the modification. It's true that the modification process will take some time, but it could be worth a try given you intend to keep the house.
Since your husband has filed bankruptcy, the lender will now use only your income to determine if you qualify for the loan modification. Once your husband gets discharged through bankruptcy, he will not be responsible for the mortgage. This is why the lender would not include his income while determining your eligibility for the modification. It's true that the modification process will take some time, but it could be worth a try given you intend to keep the house.