Posted on: 24th May, 2009 09:19 am
We filed bankruptcy in 08 and it was discharged in Aug. 08, we tried to keep up with the mortgage payments but with my husband only collecting unemployment we fell behind, now we are facing foreclosure. We applied to the mortgage company for assistance asking them if they could put the payments we owed on the back of the loan or help us to get caught up now that we are both working. After 60 days they called and simply said this investor does not modify at all and we need to call the attorney to find out the amount to pay to bring the account current. We are attempting a mediation throught the NJ program offered but we are afraid when we meet they will say no again, is this because we filed bankruptcy that they won't work with us?? We could not reaffirm at the time because we didn't have the income, now we have more than enough income to meet the monthly obligation but they won't help by spreading out the payments or anything. Any advise???
hi madison,
a reaffirmation could probably have avoided this situation. but anyways, if you still keep making the payments they will not foreclose on your property. you will not be able to refinance to a lower rate because of the bankruptcy on your credit. in this situation, a loan modification seems to be the only way through which you can make you monthly payments affordable and keep your house from foreclosure. talk with your lender and convince them to modify your loan. if your loan is fannie mae or freddie mac owned, you can also qualify for the new home affordable modification program.
a reaffirmation could probably have avoided this situation. but anyways, if you still keep making the payments they will not foreclose on your property. you will not be able to refinance to a lower rate because of the bankruptcy on your credit. in this situation, a loan modification seems to be the only way through which you can make you monthly payments affordable and keep your house from foreclosure. talk with your lender and convince them to modify your loan. if your loan is fannie mae or freddie mac owned, you can also qualify for the new home affordable modification program.
From my experience, if someone is not working in the household, they will not modify a loan. At least in the past few months. They may have done this last year, but with the housing market getting worse in more states than just a few, I think mortgage companies have changed their mind.
Hi Sad,
You're right. If the borrower does not have a job, the lender will, most probably, not do a loan modification. If the lender is not sure whether the borrower would be able to afford the payments, they will not modify the loan.
You're right. If the borrower does not have a job, the lender will, most probably, not do a loan modification. If the lender is not sure whether the borrower would be able to afford the payments, they will not modify the loan.