Foreclosure Help – Stop Foreclosure – Loan Modification

Loan Modifications in Bankruptcy

I was asked the other day by a homeowner that had recently file bankruptcy. “Can I get a loan modification while in Chapter 13?” the long and short answer is yes.

Within the last year there have been some aggressive attempts from the lenders to help with the foreclosure wave. One such attempt is to intermingle loss mitigation with the bankruptcy department.

Typically, the bankruptcy department and loss mitigation department are separate entities that do not cross, once in Bankruptcy they are no longer loss mitigation programs available and nothing can be done. The problem in the past was if a homeowner filed bankruptcy just before the sale date (auction date) once they are discharged from bankruptcy if not completed the process placed back in foreclosure. The sale date was set quickly once discharged because they were a day before sale. The issue was there was not enough time to set up a program and the house would be sold.

Just last week I was working with a homeowner that is in bankruptcy and they tole me they were being discharged and going back into foreclosure. I was not only able to work out a plan before the foreclosure sale date but I was able to workout a plan while the homeowner was in bankruptcy. I was able to have a loan modification set up and upon discharge from bankruptcy modification paperwork was delivered and the homeowner was able to stay in the house. We were also able to change the interest rate from an adjustable to a fixed rate plan.

The entire negotiation process for a loss mitigation program was handled while the homeowner was in bankruptcy. This particular lender has a few loss mitigation negotiators assigned to the bankruptcy department, good thinking. Learn our processes from the manual that taught the loss mitigation training to our staff.

Saturday, March 15th, 2008, by Foreclosure Help and is filed under "loan modification while in bankruptcy, loan mod, loan modification, loan modification while in BK, loss mitigation training ". You can leave a response here, or send a Trackback from your own site.

Loan Modification Help says:

April 22, 2008 at 4:40 pm

I’m am writing this for a friend to try and help him. I hope you can help.

I’m in bankruptcy and approaching foreclosure, I have Trustee that I pay $445.00 every month, for one year, the money has not been used. Now , the mortgage company wants an additional $1700 dollars for a period of six months, for back mortgages.
Can I enter into a loan modification program now?
What should I do, I have an attorney, but he’s not doing very much.

Karen W says:

May 21, 2008 at 1:14 pm

We are also in a Chapter 13 and have been making payments since Oct 2006. We got behind this year and I have been working with the bankruptcy department at Chase. They suggested a loan modification – I questioned this but they stated they have started doing this. They put me in contact with the loan mit department and they stated I should qualify. I faxed the necessary papers, pay stubs, hardship letter and they forwarded this to the underwriter. A motion for relief was filed this week and my attorney is going to court with 2 payments. I spoke with him about this and he said he had not heard of a loan modification being offered to a Chapter 13. I called Chase again this week and they are trying to expedite the papers from the Underwriter. I spoke with the bankruptcy department again and they tell me this can be done. Can you please clarify this. We are still 4 months behind and if these could be placed to the end of the loan it would help so much as we do not have the money for this. Going forward we can make the normal monthly payments. Please help. Foreclosure help with Chase

loan modification says:

October 23, 2008 at 12:57 am

I’m currently in bankruptcy chapter 13 and i’m one month behind, I have a lawyer whose not doing much for me I had another lawyer but she passed away in July. I have to pay my regular mortgage of 1925.54, 779.29 for my arrears plus 50.00 to the bankruptcy court per month what can i do to get a loan modification and have my arrears placed at the end of of my loan.

Sherrie says:

November 23, 2009 at 7:24 pm

You will have to remove your house from the bankruptcy. You will no longer receive protection for your home under the bankruptcy case. A modification can be done, however, do not expect any help from your attorney!

Keith says:

January 17, 2010 at 4:56 pm

I am in a bankrupcy can i still get aloan modification while in it do not want to lose my house but the bankrupcy payments are to high if i could get second chance to just pay my normal mortgage payments i would be fine.

Loan Modifications in Bankruptcy

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