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Foreclosure/loan mod and bankruptcy


Hey Steele,
I've been in this loan mod process with B of A for about 10 months. Recently they said I was DENIED.  However, on the same phone call they said,  "Would you like to see if I can reinstate the process?"  So I resubmitted all the financials again. Not sure if they're doing the HAMP or some other thing now.

Anyway, I recently received a notice that my house is scheduled for AUCTION sometime in December. My B of A contact wants to see the notice.  So I guess she isn't aware of that.  Also, could that just be junk mail?  Looks real!

Now I'm thinking I have to file bankruptcy to stop the foreclosure all this tons of junk mail is telling me, from lawyers.  Bankruptcy might be a necessary evil, as I have about $60K in bad creditcard debt.  Some has already been ajudicated. SoI guess there's liens on my house.  I have two houses, so not sure which one. (If any)  

Question, Would bankruptcy kill my chances for a loan modification, or would that actually work in my favor by getting bad debt off my back?  Also, in bankruptcy, can the judge get rid of debt that has already been decided and consequent liens if any?


Normally if you are in Bankruptcy any work with the lender goes on hold.  The modification is stopped as well as the foreclosure.  And most lenders will file to get the foreclosure going

They won't be doing the same for the modification.

Since departments within a lender don't always have the greatest communication with each other I would send a copy of the notice to your contact.

Personally I would use BK as more of a last resort.


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Steele V. Propp


Can answer questions on all areas of the foreclosure process both judicial and non-judicial. Also on loss mitigation and foreclosure prevention including loan modification, short sales and deed in lieu of foreclosure. Also can assist with questions on purchasing property in foreclosure and already bank owned (REO, Real Estate Owned). Both as an investor and/or a homeowner.


I have 18 years of working with the foreclosure industry as a Foreclosure Specialist. Currently work with over 20 major lenders as well as a dozen asset management companies. Head up the Bank Owned Property Division of the Schatz Real Estate Group located in Minneapolis, MN. Regularly consult and advise consumers from across the county.

I belong to the Realtor Association at the National, State and Local levels. Also the Real Estate Investors Association. The Real Estate Educators Association. The National Association of Real Estate Consultants. The Short Sale Specialist Network. As well as number foreclosure related industry organizations.

Consumer Reports, Money magazine, Consumer Digest and many local and national newspapers.

Bachelors Degree work in Psycholgy and Economics. Masters Degree work in Counseling Over 15 real estate designations. Specialized ongoing study of foreclosures, short sales, mortgages and real estate.

Awards and Honors
Diamond Award from the Certified Residential Specialist (CRS) origanization. Chapter of the Heart as President of the Minnesota CRS Chapter. Consumer-Certified Real Estate Consultant Certified Distressed Property Expert

Past/Present Clients
GMAC Asset Management, First American REO, HomEquity REO, Keystone Asset Management, Greentree, REOWorld, ServiceLink and more.

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