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2 years after ch 7 discharge - want to do a loan mod

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MyFico_704
Regular Contributor

2 years after ch 7 discharge - want to do a loan mod

We filed ch 7 discharging 3 mortgages totaling $260k.  We're still staying in the home and still making payments on the first ONLY and have never missed a payment and never late.  Since we're paying the bank cannot or probably will not foreclose.   However because of the ch 7 discharge our payments are NOT being reported to the credit bureaus so rebuilding our credit scores is tough... we do have a couple unsecured cc and a couple small balance department store cards.

 

We want to do a loan modification, if possible just on the 1st and 2nd (combined 225k).  Balance on 3rd is about 40k.  House FMV is probably 220k.

 

Would bank (WF) even consider doing a loan mod for us?  Again we're still paying on 1st only.. and never late.  And would they modify for less than the total debt owed?  I've also read somewhere that banks usually will NOT do loan mods unless homeowner is a few months behind on payments.  Is this true?

 

If loan mod is agreed, does the bank report our payments to the bureaus?  We'd like to reestablish and get credit for our mortgage payments.  

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Kozmo
Frequent Contributor

Re: 2 years after ch 7 discharge - want to do a loan mod

Every lender will treat this different and more importantly it depends on the investor on the mortgage.

You can do a loan mod in a bankruptcy but "sometimes" lenders will only do it if you re-affirmed the home...but not always.

As far as being behind it depends on what modification you applied for. HAMP doesn't require being past due, but it is based on need. So if you can more than afford to pay the mortgage along with your other debts then its unlikely.

But if you went through a hardship...and I don't believe the act of BK constitutes a hardship then it might be possible.

Best to just call the bank and see If you can apply.

As far as credit reporting goes that I'm not sure about. They may ask that you re affirm the loan before they do the mod. So if that happens then yes.
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