Posted on: 28th Jul, 2009 09:04 pm
i was approved for a loan mod, sign, notarized and returned the documents. bank verified that the mod was complete. i filed bankruptcy after they verified that it was complete. i contacted bk dept to find out where to send payments. i was told that the mod was not complete and they would not honor it now. i was transfered to loss mitigation who again verified that it was complete before i filed. i was told that they had not applied my payments correctly and would contact my processor to correct this error. can the bk dept withdraw the mod?
The lender can withdraw the loan modification as you've already filed a bankruptcy. The lender may think that he will not be able to get back his dues as the court will put an automatic stay on the creditors. However, the bankruptcy department doesn't have the right to withdraw the modification. It would be the lender's discretion.