How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

I recieved a chapter 7 discharge. We our upside down in our

Resolved Question:

I recieved a chapter 7 discharge. We our upside down in our house, we surrendered in the "BK", the lender has been sending us statements, and requesting documents to modify the loan. I am leary about signing anything, as I can't afford the original terms, and my partner in the home is income that in long term is not reliable. I would like to talk to a Bankruptcy lawyer that is specialized in realestate, to get advice about what is realistic. The lender is in the midst of a "Class Action Lawsuit" and required to offer "HAMP".
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

What is your Bankruptcy Law question, please? (What would you like to know?)

Customer: replied 6 years ago.
Should we sign the modification documents that Wachovia has sent along with earning statements, and monthly billings for house? Does this reaffirm the loan?
Expert:  cfortunato replied 6 years ago.

No - if you apply for and receive a mortgage modification, that is not the same as re-affirmation. In a modification, the monthly payment typically gets reduced by around $100, and the term gets extended - usually to 40 years instead of 30 - but the balance of the mortgage is not reduced.

It may and may not be worth it for you to continue paying the mortgage for a house that is worth 1/2 of the mortgage amount.

Please let me know if there is anything additional that you would like to know.

Thank you!

cfortunato and other Bankruptcy Law Specialists are ready to help you