Foreclosure in Long Beach>Question Details

Justinlv, Home Buyer in Long Beach, CA

I filed for bankruptcy and was discharged, My home was in no way implicated. I was told by my lender that I was not qualified for NACA's

Asked by Justinlv, Long Beach, CA Sun Oct 25, 2009

assistance. I'm currently negotiating with NACA to have my mortgage modified, I also lost my job in January. My lender says there's nothing they can do their hands are tied and is refusing to help. Am I the only one who has filed bankruptcy and was refused help by their lender? What is my recourse?

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Thank you very much for responding.
0 votes Thank Flag Link Mon Oct 26, 2009
First off, you are not alone. There are many people in your exact situation. Given the information, you don't have much recourse except to continue to make your payments or sell. You can't qualify for a loan modification because you lost your job and had a bankruptcy. Adding to Emily's post, you have to qualify for a loan mod like you would qualify for a home loan. You need a job with good income and decent credit. Because your circumstances are much different than when you originally qualified for your loan, the bank will not approve it. The default rate of people who have had their loans modified is very high, so banks are careful about the qualification guidelines.

Are you still able to make your payments? Do you have equity in your home? If you are in trouble, don't wait to get assistance. Only 1 out of 5 who apply for a loan mod are approved. The rest end up as a foreclosure or short sale.

I am here to help. If you would like more detail, please feel free to contact me.

Good luck,
Jeremy Lehman
Prudential California Realty
0 votes Thank Flag Link Mon Oct 26, 2009
After a person files bankruptcy they can't buy a home for another 7yrs. VA for example, will give you a loan a year after BK but nowadays the bank won't fund it.

I think the fact that you filed BK shows the bank that you cannot afford your bills and they figure that your likelihood of defaulting on your mortgage is inevitable. If there was still subprime loans available, 100% financing & market values that are appreciating, you may find the bank a little more willing to work with you.

I am not an accountant or lawyer. However I suggest you speak with a real estate attorney (one not associated with a loan modification business 1st) and an accountant regarding your situation.

Please also see if & by how much more you owe on your home than it is worth. It may not make sense for you to do a loan modification, because banks are NOT reducing principal balances on 1st mortgage notes.
0 votes Thank Flag Link Sun Oct 25, 2009
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