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Can you file for bankruptcy while getting a home mortgage loan modification?
JKRAUT1
You cant have both concurrently. I know most servicers and Fannie guidelines for loan modifications do not allow a loan modification while in Bankruptcy. There is a bill floating around congress that would allow Bankruptcy judges to do cram downs and modifications of loan term in Bankruptcy court. This would be the most practiable way, However there is a huge lobby for the banks that dont want this bill passed.
Do the mod, then file the BK. I'm assuming your filing a Chapter 13? You did not specify in your question.
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∙ 14y ago
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Can you do a loan modification if you are in chapter 13?
A Chapter 13 bankruptcy puts the entire debt collection process on hold to give the filers time to work out a court-approved repayment plan for a portion of their debts. Thus, because the process is on hold, a loan modification can not be enacted while a mortgage is currently under the supervision of the Chapter 13 trustee. However, it is possible to negotiate a modification of a loan with the mortgage lender during the bankruptcy. But it will be necessary to have the bankruptcy case voluntarily dismissed before the modification can be finalized and put into effect. Banks may not be willing to negotiate with the borrowers under the circumstances of a Chapter 13, though.
Will a loan modification application stall foreclosure proceedings?
I know of people who applied for the modification but all the while the mortgage company proceeded with the foreclosure. So, yes they still will foreclosure apparently. Its like one hand doesn't know what the other is doing. the individuals that I know had to file chapter 13 bankruptcy to stop the foreclosure sale from happening
Can you refinance your mortgage during bankrupcty?
No, you can't borrow any more $$$$ while you are in bankruptcy. Even on an existing loan. It is against the law.
Is it better or worse for your credit to let the bank foreclose on a mortgage of a second property while facing bankruptcy?
A foreclosure or bankruptcy is never good for your credit, this is something you'd be better off discussing with an attorney. You can avoid foreclosure by filing bankruptcy.
Can I get a home loan while I am in bankrupsy?
can i get a loan to get caught up on my mortgage before foreclosure i have a good job now CAN I GET A MORTGAGE LOAN WHILE IN CHAPTER 13 BANKRUPTCY Yes, you can. However, it will be at a very high interest rate. Approach your local credit union for the best deal.
Can you refinance in chapter 13?
Yes. If you have had 12 months of on time payments to the truste and your mortgage has been paid on time,While participating in a Chapter 13 bankruptcy, no major financial transactions are allowed w/o the permisson of the bankruptcy trustee.
How do you write a hardship letter for mortgage approval?
A letter of hardship for loan modification is essentially your best prospect to give explanation to the lender, the conditions that led you to be in arrears on your mortgage. It is crucial to be precise, clear-cut, and truthful while writing the hardship letter. Sugar-coating your situation is not recommendable.
Can I do a Bankruptcy and foreclosure with a second mortgage at the same time?
YOU don't evcer do a foreclosure on what you own. the bank does. Bankrutpcy overrides foreclosure and in fact will essentially delay it while the property is sold in the BK process.
How do I get the best mortgage rates while not getting tricked by small print?
The best way to get the best mortgage rates without getting tricked by small print, is to go find a lawyer. This way, they are able to save you from any fine print troubles.
What options are available to owner to repossess rental house from non-paying tenant who has filed ChapterThirteen bankruptcy and continues in possession of rental house?
While I'm not certain how, if at all, his filing bankruptcy controls your options - for sure - it isn't a repossession. That is done when someone defaults on a mortgage and that process changes ownership of the property to the mortgage holder. The mortgage holder then has to evict and take possession of the property.Presuming he hasn't paid his rent (if he has, you have no cause for action), that last step - eviction - is what you have to do with a non paying tennant.
Can you keep home in bankruptcy?
In the State of Illinois, you can keep your home while filing a Chapter 7 if it is determined that you do not have an equity position in your home that exceeds the Illinois statutory exemptions and continue to be current on your monthly mortgage payments.
Bankruptcy and Home Ownership Laws?
Bankruptcy laws vary by country, but generally, bankruptcy does not automatically result in the loss of home ownership. In many cases, individuals filing for bankruptcy can keep their primary residence through exemptions or by reaffirming the mortgage debt. However, this may depend on various factors, such as the equity in the property and the specific bankruptcy laws in place.
