Comments on: Are Mortgage Modifications in Bankruptcy a Good Idea – Part Two http://www.thebklawyer.com/thebkblog/2009/02/17/are-mortgage-modifications-in-bankruptcy-a-good-idea-part-two/ Personal Bankruptcy tips and tricks moderated by Atlanta lawyer Jonathan Ginsberg Tue, 17 Jan 2012 01:57:46 +0000 hourly 1 By: Matthttp://www.thebklawyer.com/thebkblog/2009/02/17/are-mortgage-modifications-in-bankruptcy-a-good-idea-part-two/#comment-11645 Matt Wed, 25 Nov 2009 07:18:43 +0000 http://www.thebklawyer.com/thebkblog/?p=297#comment-11645 <p>I am a real-world example of why the cram-down should be allowed through chapter 13.</p> <p>I have lived in my home for 10 years, we always paid ontime. Then in 2007 my company started to slow down and when we had other customers go bankrupt on us, we had to close the company and file chapter 7 personally. We were even on welfare for several months.</p> <p>We owe about $800K between the first and second and the house up the street just sold for $585K.</p> <p>If a judge could help us avoid foreclosure by reducing some of the principle and adjusting the mortgage terms to make it a little easier for us to get back on our feet - it would provide us a little more stability that we have been lacking over the last two years and maybe when things get better we can get back into small business and employ people like we did in the past 7 years.</p> <p>Right now, our servicer Chase put us through 7 months of back and forth and a Making Home Affordable trial payment plan only to tell us that we were denied the modification and after several calls they still won't tell us how exactly we don't qualify or what numbers and calculation they are using, only "lack of income". We have three kids 5yrs and younger and it would be awful if we lost the home because with our bad credit it will be difficult even to rent.</p> I am a real-world example of why the cram-down should be allowed through chapter 13.

I have lived in my home for 10 years, we always paid ontime. Then in 2007 my company started to slow down and when we had other customers go bankrupt on us, we had to close the company and file chapter 7 personally. We were even on welfare for several months.

We owe about $800K between the first and second and the house up the street just sold for $585K.

If a judge could help us avoid foreclosure by reducing some of the principle and adjusting the mortgage terms to make it a little easier for us to get back on our feet – it would provide us a little more stability that we have been lacking over the last two years and maybe when things get better we can get back into small business and employ people like we did in the past 7 years.

Right now, our servicer Chase put us through 7 months of back and forth and a Making Home Affordable trial payment plan only to tell us that we were denied the modification and after several calls they still won’t tell us how exactly we don’t qualify or what numbers and calculation they are using, only “lack of income”. We have three kids 5yrs and younger and it would be awful if we lost the home because with our bad credit it will be difficult even to rent.

]]> By: Houston Bankruptcy Attorney Alex Wathenhttp://www.thebklawyer.com/thebkblog/2009/02/17/are-mortgage-modifications-in-bankruptcy-a-good-idea-part-two/#comment-10779 Houston Bankruptcy Attorney Alex Wathen Sun, 22 Feb 2009 04:26:24 +0000 http://www.thebklawyer.com/thebkblog/?p=297#comment-10779 <p>While I appreciate the concerns raised by opponents of mortgage loan modification on a debtor's primary residence, those criticisms may ignore that the approach taken so far by Congress has been to spend money throwing it up in the air and hoping it lands in the right place. Mortgage modifications do not cost the tax payers money unlike all these other programs that have been created but failed to solve the problem. As any good consumer bankruptcy attorney will tell you, the mortgage companies' hands are tied because of securitized trusts that finance the loans. The mortgage companies are forced to all but certain take losses of foreclosure rather than a reasonable modification that allows people to stay in their homes and the mortgage companies to still make some money. Politicians of both parties have failed to listen to the consumer bankruptcy attorneys at least until now.</p> While I appreciate the concerns raised by opponents of mortgage loan modification on a debtor’s primary residence, those criticisms may ignore that the approach taken so far by Congress has been to spend money throwing it up in the air and hoping it lands in the right place. Mortgage modifications do not cost the tax payers money unlike all these other programs that have been created but failed to solve the problem. As any good consumer bankruptcy attorney will tell you, the mortgage companies’ hands are tied because of securitized trusts that finance the loans. The mortgage companies are forced to all but certain take losses of foreclosure rather than a reasonable modification that allows people to stay in their homes and the mortgage companies to still make some money. Politicians of both parties have failed to listen to the consumer bankruptcy attorneys at least until now.

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