The HAMP guidlelines do not allow the lenders to require reaffirmation in order to modify. And reaffirmation can only happen while your case is active. The modification will have not change the fact that your are not legally obligated to pay the money back as a result of the bankruptcy.
As I understand your facts, you had your debts discharged in a Chapter 7 bankruptcy and did not reaffirm the debt on you home, the result of which is that you are no longer personally responsible for the debt.
Without actually seeing the loan modification agreement, it would be my belief that by entering into a loan modification post discharge that you are incurring new debt post discharge and would therefore once again be personally liable on the mortgage.
Having said this, you would have to weigh the advantages you might receive in lowering your monthly mortgage note against the fact that you will once again be responsible personally for the mortgage.
"Do It Yourself" bankruptcy filing is a really bad idea, so you should seek the advise of an experienced bankruptcy attorney to answer your questions. While the Bankruptcy Code is federal law, there are local procedures and forms. "Do It Yourself" bankruptcy filing is a really bad idea The information provided is not intended as legal advice. No Attorney/Client relationship is intended, implied or created.
It could be considered post petition (after the filing) debt when you do a loan modification after a bankruptcy. Think of it as a new loan that modifies the terms of the old discharged loan. Even if the bankruptcy discharged the loan the signature on a fully executed loan modification is like making a new mortgage and the mortgage company theoretically could come after you for a default. They still have a valid lien on the property and must foreclose the lien because of the discharge, and the bankruptcy filing discharged you only personally for the debt. The tax liability issue is a more complex question. Hope this helps
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Answerers were all outside of California. (no offense guys)
No one mentioned California Code of Civil Procedure 580.
Go to local bankruptcy counsel and run through the scanarios.
Is there any chance that you coud enter into a BRAND NEW purchase with the California walk away provision for extra measure?
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