Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Correct: wanted to retain the property and reaffirm the debt.
During the few months it took to complete the filing, the BK attorney said to stop all payment of any kind to anyone. We did so for about three months before feeling it was time for us to resume with the mortgage servicer.
By that time there were some late fees to cure the loan. We learned of some options to modify the loan as a means to take care of those fees and ensure the loan was comfortable moving forward.
We started the loan modification application process while resuming loan payments -- but those payments quickly started coming back to us as unaccepted. Chats with the loan servicer call center told us that payments would not be accepted while in loan modification application mode. Turns out that was wrong; the bank had already put the property into foreclosure status (which we would not learn for some years to come).
By that time the fees had become too large for us to cure the loan out of pocket, so had no choice but to continue to pursue the modification possibility to save the house.
3.5 years and 12 loan modification re-attempts (Chase Bank times out on documentation, can't seem to get to a final answer on it) later, we finally decide to attempt to secure a new loan from a different bank to 'buy-out' the current servicer and start fresh with the same home. It was then that we learned that the debt on the home was discharged (account shows as close don credit reports and banks cannot refinance a non-existent loan). Further digging had us also then discover our real situation of debt discharged but title still in our name...