Mortgage modification through bankruptcy

[butterfly40324]

Hello,

My husband and I filed Chapter 7 bankruptcy and it was discharged in November.  We reaffirmed the mortgage and our lawyer did a modification on it to lower our interest rate and payment.  We were never late on mortgage and continued to pay on it through the bankruptcy process.  I pulled a copy of my credit report and notice that the mortgage is no longer listed on any of my reports.  When or if they do start reporting it again will it have a negative impact on my score for being modified, even though I never missed a payment?

TIA

[Anonymous]

Tia, first our thoughts are with you and your family. Although I don't have an answer for your question, I would appreciate any information you might have on the modification your attorney was able to do. My post is just ahead of yours "Bankruptcy or Foreclosure". I asked the attorney that I had spoken with if he had any experience with mortgages being modified during the reaffirmation process. He didn't have much information for me, but then again I haven't paid him anything, yet.

We are facing this possibility of BK for two main reasons loss of income and inability to sell our home(if we wanted to). Our 5/1 ARM comes to term in September, so if we could get a modification during the reaffirm process that would be a real plus to declaring BK.

I wish you the best and hope it's easier to breathe these days.

[butterfly40324]

Hiya. Thank you for your kind words.  I feel for you, I understand what its like.  To be honest we didnt even know that our attorney had modified our mortgage until the day we showed up in court.  Bless his heart he was a great guy but his communication skills were lacking.   We were reaffirming the mortgage and the day of our hearing he showed us the papers and told us he was able to get it modified.  If I were you I would talk to another lawyer if he isnt familiar with it.  If you are wanting to keep your home it is def worth looking into.

Good luck, I hope it all works out for you.

[Lel]

If the mortgage is reported as "paying on a partial or modified payment plan", then this has a negative effect on one's FICO scores.  However, since you already have a BK reporting, the effect of this comment may not be as great.