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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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After Chapter 7 is filed, and the house debt was not assumed,

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After Chapter 7 is filed, and the house debt was not assumed, what options are there right now to keep the house. the lawyer said that so long as we continue to pay, nothing will happen. I compare it to paying rent. Besides loan modification, are there any other options available. I thought you had to show proof of income, verses unemployment benefits, to be able to get accepted for a loan modification. I was also told by the attorney that once we accept the terms of a loan modification we are indebted for the full amount of the loan prior to the Ch 7? What terms are available? We tried the 800 hope number, but I was more confused by the answers, and had more questions.

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

The chapter 7 bankruptcy would have discharged your personal liability on the mortgage but not the lien on the property. This means if the property were to go into foreclosure, the lender could sell the property to satisfy the debt but could not obtain a deficiency judgment against you for the unsatisfied portion of the mortgage.

Consider negotiating with the lender for a modification to a lower interest rate a more affordable payment

The first thing to be aware of is that a lender is not going to modify a fully performing loan. You will typically need to be 60-90 days behind before they will discuss modification. They will only modify to mitigate their risk . As long as you are paying, they have no incentive to modify.
Customer: replied 6 years ago.
I'm afrain of falling behind on payments do to the risk of the home going to foreclosure. Is there a way to minimize the risk while applying for the modification?
Unfortunately that is a risk of falling behind in your payments. You can attempt to negotiate with the lender without falling behind however the lender would likely not have an incentive to negotiate
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