has now been refiled and a process server has been trying to serve me the papers. I am in an industry (staffing) that was hit extremely hard in the recession and I am just getting back on my feet now and would like to try to get a loan modification. I also have an extreme amount of debt due to a failed property purchase. First of all, do you think there is any chance that I could secure a loan mod after all of this time (I was originally rejected because the insurance had lapsed as I was on unemployment and couldn't afford), and if I can get a loan mod can you file Chapter 7 and still keep your house?
It is possible, but unlikely, that you could now get a loan modification. You should contact an experienced foreclosure defense/bankruptcy lawyer in your area for help.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
If you had a change in circumstances (you now have a job and a steady income), you can always try again for a loan modification. You're in a better position if your loan is a GSE loan - this is a term that refers to Fannie Mae and Freddie Mac loans. These loans are eligible for review under HAMP loan modification. If your loan is owned by a private investor, they may have programs, similar to HAMP. To find out if your loan is GSE loan go to this website www.makinghomeaffordable.gov. Start there and follow instructions. Or, you can hire a foreclosure attorney and let him do it for you. I also included a post on how to improve your odds at getting loan modification. Good luck.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is or is intended to be created by my answer. You should contact an attorney in your area to discuss your case.
You need to consult an attorney who understands both foreclosure-related litigation and bankruptcy. And, you may do better to file Chapter 13 than Chapter 7, however, that too needs to be sorted out with a knowledgable attorney. While unfortuantely the Florida state courts have abandoned the mediation program that was initiated rathern than fixing it, in the Middle District of Florida bankruptcy court, there is a worthwile mediation program in place, when people want to get into HAMP or another similar modification program on their first mortgage. However, this is NOT something you should try on your own, as if it is not done properly (assuming it is the right strategy at all) it can backfire in a big way.
Depending on all the details, it may be possible to put on a viable defense to foreclosure perhaps
relating to issues you are not even aware of, or to cut to the chase via a Chapter 13. However, while people are allowed to represent themselves in court, it is a huge mistake to try. In order to do this effectively, you should obtain the services of knowledgable counsel. In your case, there are possible strategies involving foreclosure litigation and/or bankruptcy, so you need someone who understands and can evaluate which would be the best move for you. This is not something that even most attorneys know how to do. We have quite a few clients who are themselves attorneys, yet have come to us for help because they understand this, and realize that in order to have a chance against the "big guys" they need really qualified people to help them.
Doing this properly is very difficult and detailed work. It is a very specialized area of law which most attorneys do not fully understand, and there are few if any consumers who would be able to put together any sort of viable strategy and then work it through. I am always puzzled at why any non-attorney would think he or she could successfully handle a litigated matter without an attorney highly qualified in the area of law in question. This is comparable to doing delicate surgery yourself or a loved one if you are not a surgeon. The law is very complex, litigation and bankruptcy rules and
procedures are very complex, the strategic considerations are very complex, and the area of foreclosure litigation and securitized mortgages in bankruptcy proceedings is something even most attorneys know nothing about as explained above. Every case is different, what might be possible in this situation would depend on the exact details and legal issues in your case. Only a
really qualified attorney will know how to even figure out what those are.
An attorney who really understands how this works needs to hear all the details.If you care how this turns out, I urge you to find an experienced attorney who is knowledgable about
foreclosure lirigation and bankruptcy to represent you. I see pro se people in court all the time. It is sad and frustrating to me - they are lost, cannot possibly know enough to be effective, and of course, they get walked all over, even when their issues are "winnable". There is no way to explain here what it takes many years to learn. That is why people hire lawyers in the first place.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
There is also no harm in calling Neighborhood Home Solutions, a grant provided service to help homeowners, There is no charge to talk with them. Their phone number is 727-821-6897. See the link below.
You need to consult with an attorney who is experienced in both loan modifications and bankruptcy. There are many issues here. If you have two mortgages on the property, you may be able to modify one and file a Chapter 13 while you are still making trial payments and lock your trial payments in as your plan payment to the bank, then strip off the second mortgage. In five years, you will have a home that has only one mortgage and be otherwise debt free.
One of the challenges in modifying a loan that has been in default for 3 years is that the unpaid interest, principle, and escrows can be oppressively high, and thus difficult to modify. Another strategy may be to turn the property into an investment property and file a chapter 13 and cram down the first mortgage. This means the balance of the mortgage will be reduced to fair market value. You will have 5 years to pay it off, but you generally need rental income on the property that is sufficient to make the payment. If this would work for you, you could have a free and clear house in 5 years.
It could be a problem if you get stuck with a really bad loan mod that you may not be able to afford long term and then file a Chapter 7 and reaffirm the mortgage. I have seen people do this without an attorney and put themselves in a tough spot long term We have more info on our website about bankruptcy for homeowners you may find helpful.
I do not think that the previous rejection will have any bearing on getting a new loan modification. You do have to qualify. Your options will depend on what you want to do with the property and if you qualify. If you want to keep it, you should try a modification. But, remember the foreclosure moves forward while you are trying to work out something with the lender. I can help you with this. My firm handles modification, foreclosure defense, short sales and deed in lieu. Call my office for a free consultation. Do not just ignore the complaint. You have rights.
Statements made are for informational purposes and are merely a legal opinion.
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