Posted on: 13th Jul, 2009 01:47 pm
We want to work out a loan modifiction with our mortgage lender (Citimortgage). We filed for Chp. 7 BK in March 2009. Our debts were discharged in May 2009. We thought we signed a reaffirmation for our home, but according to our lawyer we did not because they said that they do not do this because it is not in their clients best interest. We have been behind in our mortgage payments for past 6 months. We tried to do loan mod in Jan 2009 but Citimortgage said they cannot do this at this time because we were going through BK. After BK they said they can talk to us. We are now out of BK and discharged as of May 20 and want to work with Citimortgage to do a loan modification because our intent is to keep our home. We have 2 young children and have no where to go. My question to all out there who have any information: Is it still possible to work out a loan modification with Citimortgage even though we did not sign a reaffirmation agreement???
We are in the middle of a loan modification they proposed a lower interest rate but did not lower the PMI. With the PMI the modified loan payment is still well above 31% of Gross income. Can we negotiate PMI with the investor?
Hi!
Welcome to forums!
To Deecan,
As you have been discharged from your bankruptcy now, you can apply for a reaffirmation with your lender. If the lender agrees to it, then you can go ahead and sign the reaffirmation agreement with your lender. It would depend upon the lender's discretion whether or not he would agree to a loan modification.
To Cyclist,
Your query has been answered in the given page:
http://www.mortgagefit.com/problems/pmi-modification.html
Please take a look at it. I hope it'll help you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Deecan,
As you have been discharged from your bankruptcy now, you can apply for a reaffirmation with your lender. If the lender agrees to it, then you can go ahead and sign the reaffirmation agreement with your lender. It would depend upon the lender's discretion whether or not he would agree to a loan modification.
To Cyclist,
Your query has been answered in the given page:
http://www.mortgagefit.com/problems/pmi-modification.html
Please take a look at it. I hope it'll help you.
Feel free to ask if you've further queries.
Sussane
Great news! Our lender is willing to work with us. Our payment will lower by about $600 per month at 2.75%. The program is a step modification. It will increase over the next 5 years and then top out at 5.5% interest rate. Right now our intereset rate is 7.5%. We are so happy about this. We hope and pray that more people are helped by their lenders as we were.
Congratulations deecan :)
My daughter and I have a house together - I am now not working laid off plus going thru cancer care, cobra, and co-pays are high- $300 to $500 every 3 months est at best. I am the only one filing chapter 7 and was told not to do a reaffirmatin, that a judge would throw it out- is this true? Plus how is this going to hurt my daughter at any point in time?
this is info I forgot to add, plus I am on unemployment.
hi shirley,
if your daughter is not filing bankruptcy, then she won't be affected. if you do not reaffirm your mortgage, the lender will have the right to foreclose the property. thus, you will lose your property. if you reaffirm and pay off the mortgage dues, it will help you save your property. before filing bankruptcy, it would be better to discuss your situation with a bankruptcy attorney.
if your daughter is not filing bankruptcy, then she won't be affected. if you do not reaffirm your mortgage, the lender will have the right to foreclose the property. thus, you will lose your property. if you reaffirm and pay off the mortgage dues, it will help you save your property. before filing bankruptcy, it would be better to discuss your situation with a bankruptcy attorney.