My bankruptcy was discharged 12/9/11. I am living in my home of 14 years and bank would not modify when we ran into trouble a couple years ago. Tried several times and got turned down. haven't made a house payment in 20 months. Now my bank wants to modify with us. Is the title still in my name or did it go to them when i defaulted on my payments ?
Unless they actually foreclosed on their mortgage, you are still the titleholder. The fact that you've lived there, rent-free for 20 months does not change that. The bank's willingness to look at modification may mean they don't want any more foreclosures, or that there is new government money available to them to help modify loans, or who knows? Start the process and see what they have to offer. If it allows you to stay in the house and pay the debt then it is worth looking into. Good luck!
Filing for bankrutpcy does in itself alter your ownership interest in the property. Apparently, there has been no foreclosure since lender is now wanting to work with you. Agree with other counsel, nothing to lose by applying for a loan modification, no guarantees it will be approved and no way to know the terms until they are presented to you after your application has been considered. You can always turn the modification down though of course foreclosure is inevitable if you don't come to an agreement and start making payments. But, if the terms of the modification make the home affordable and you wish to stay in the home, you have everything to gain. The hard part is getting the paperwork filled out and continuing to send updated documents to lender and waiting until they make a decision. Good luck.
You are still the owner.. but since you filed bankruptcy and were discharged you are no longer personally liable for the debt on the house. (You could be looked at as a renter with the bank being a landlord.. but you will get the house free and clear once the mortgage is paid.)
My immediate concern is that if you sign anything such as loan modificaiton papers you may be seen as reaffirming your personal liablity on the mortgage. I advise getting your bankruptcy attorney involved!
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