Ivonne,

My wife and I lost our high-income jobs. We did a chapter 7 BK after getting a foreclosure notice because an attorney misguided us on what to do. During the process we moved out of our apartment and started renting again. After almost two years and seeing that the bank did not finalized the foreclosure we decided to try to negotiate with mortgage servicer to see if they would modify the loan. They actually did. They reduced the principal owed, and fix the rate to a 4% fix for 30 Years. The payment was reduced and now we can afford the new mortgage payment. 4 Months have pass and the foreclosure still open so we are still dealing with the Bank to drop the foreclosure.

I negotiated the modification myself but the process was steamily difficult because the employees seem to not know what they were doing and change the information all the time on me. That is why paying someone with experience is beneficial. The difficult part is finding that person. Be careful who you pay 3K. I work in a Credit Union and have heard a lots of stories from members that pay and don't get results.

The issue is the chapter 7 discharged the mortgage, which means there is no mortgage. However, if you affirm the debt you would be able to do a modification. You really need to find someone in your area through this process because it is complicated and creates issues for you if you reafirm the debt and decide you do not want the debt because the modification turns out not to be what you want.

Your in a difficult situation, so make sure you know what you want and make sure what you want is attainable.


Good Luck!

Keith Manson
Certified Distressed Property Expert
Greenfield,Wisconsin

Ivonne: You need to spend more time on this and speak to several more companies. Work only with a DRE approved company that specializes in loan modifications and gives you a money back guaranty if they can't get a loan mod for you.

BE CAREFUL. There are a lot of so called experts out there who do NOT know what they are talking about. Department of Real Estate licensed lenders MUST pass a knowledge test before they can obtain a license,and this applies to each of their licensed loan officers.

Tell them you want a Department of Real Estate approved Loan Modification company.

Here are two for you to contact :

Michael Grant
AmeriBanc
951-698-9394.

Web Reference: http://www.ameribancmtg.com

Steve Gronlund: (951) 695-1371
Vintage Mortgage Group

Good Luck to you!