Welcome to Just Answer! My name is XXXXXXXX. X very much enjoy what I do and I hope that you will benefit from this information.
I would suggest that you opt for the BK route now if you can as these modifications are full of problems. The banks have been known to string people along or lose the paper work or change the terms and leave you hanging. We get those scenarios everyday here.
If you file a chapter 13 bankruptcy, the court allow you 3-5 years to pay back the arrears but you have to have enough income to still make your monthly mortgage payments and cover your basic needs. If you can do this, this is usually a better option than a mod. What happens if you pay promptly and they refuse to cancel the foreclosure? You will have to be ready to file a chapter 13 just hours before the scheduled foreclosure.
If you file chapter 7, they will eventually foreclose on the house and the mod is off. Here you lose the house unless you reaffirm the debt. But then, they will not likely give you a mod.
If you can't afford a lawyer, you can try this link: http://usabankruptcyassociates.com/usabk/index.asp?OVRAW=bankruptcy%20preparation%20pap ers&OVKEY=bankruptcy%20preparation&OVMTC=advanced&OVADID=37666520022&OVKWID=164838369522&OVCAMPGID=65625022&OVADGRPID=8264781910&OVNDID=ND1
If you need more clarification or follow up information, please feel free to write back as there is no extra charge. Otherwise, please click on the ACCEPT button. Even if you have put in your payment information, I receive no credit for my time unless you press "ACCEPT". Sometimes the law does not give you the outcome that you may have anticipated. Please understand that this is not the attorney's fault. We are assuming that you are paying for an honest and professional opinion.
Please know that there may be a delay between your follow up question and my answers because I may be helping other customers. Rest assured, I will get back to you. In the meantime, you can learn more about me by clicking on my name at the bottom left hand corner of the screen.This information is provided so you may better discuss legal issues with your attorney. Consult a local attorney for legal advice before acting. You may be able to find an attorney in your area to further assist you at http://www.attorneysaccess.com/ or http://www.martindale.com/.
If you feel that I went an extra step to help, a bonus would be greatly appreciated! Also, please know that you can always request me for a future question by starting your new question with "This question is for Maverick".
If you want to keep your house, then file a chapter 13 or try to go through with the mod and if the mod fails then be prepared to file a chapter 13 just before the foreclosure date. In other words, you must obtain written confirmation that the foreclosure has been canceled and/or postponed.
If you file chapter 13, they cannot foreclose while you are operating under a chapter 13 repayment plan.
If you want to keep your house, you need a chapter 13 not a 7.
I would suggest that you start now and either hire a local BK lawyer or use the link I sent you earlier to prepare the chapter 13 paper work yourself and file.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).