About Robert Vitt Expertise I am able to answer general questions regarding Chapter 7 and Chapter 13 bankruptcy cases. I have particular experience in personal (i.e., non-business) bankruptcies. I am unable to answer any questions pertaining to Chapter 11 bankruptcies.
Experience www.bankruptcy-ie.com
I am admitted to practice in the Central District of California and currently run my own law firm which specializes in bankruptcy.
Organizations San Bernardino County Bar Association, California State Bar
Education/Credentials Bachelor of Arts, Philosophy
Master of Business Administration
Juris Doctor
Master of Arts, Philosophy
Past/Present Clients I have had a variety of clients throughout my career. However, my immediate past clients have been predominantly individuals filing for debt discharge under Chapter 7.
Bankruptcy Law - Mortgage Loan Modifications after Filing Chap. 7
Expert: Robert Vitt - 7/2/2009
Question Hi
It looks like my husband and I were given incorrect info.(by our Atty.) before we filed for a Chap. 7 in 3/2009.
We were told to list everything, including our house because my husband had been out of work for 6 months.
Our attorney told us not to do the loan modification until after we filed. Well, I found out today 7/1/09, that Citimortgage will not do a loan modification after a Bankruptcy unless you re-affirm the loan and of course we owe several months in back payments as well. From everything I have been reading, re-affirming a loan is really of no benefit to us, especially since we can't afford the payment anymore. Is there anything at all that you are aware of that could help us keep our house?? I don't see any way at the moment.
Thank you
Answer Hello Darla,
This sounds like a nightmare, I am sorry that you two are going through all of this.
Your attorney may not have known about Citimortgage's policy but your attorney was correct in requiring that you list everything. The disclosure schedules in a bankruptcy petition are not voluntary. If you did not list the house, you could have run the risk of not getting a discharge at all...or worse the court may have taken some other action. At best, you could have delayed the filing but I do not know if you were facing other collection actions at the time that might have required that you filed when you did.
I agree with you entirely that if you cannot make the payment there is little point in reaffirming...unless you have a good chance of getting a loan modification and I doubt that they are giving any guarantees on that. It may be that because of your bankruptcy you have fewer OTHER payments to make now and so you are in a better position than you were before you started the bankruptcy.
It does, in a weird way, make some sense that Citimortgage will not "modify" the loan unless you reaffirm it first. That is because it would be as if (on Citimortgage's books) they were funding a new loan and there is just no liquidity in the market to do that right now....I am not sure about this, but that seems right.
I would consult with your attorney and see if he or she has any ideas.
I do hope this helps and again, I am sorry to hear that you are in that position.
