bank modified loan but i will not accept it,payment is still high,i even filed for bk chp7 but still i do not want to lose my home.what should i do?

Asked by Jane, Modesto, CA Fri Oct 21, 2011

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Rick McGrath, Agent, Modesto, CA
Tue May 21, 2013
For those who are like you and in similar situations here is my thoughts. First, when you took out the loan you were happy to pay the payment. Yes your circumstances may have changed and you don't have the income you once did, if that's your situation. The lender doesn't have to modify your loan. Your situation has no bearing on them. They agreed to lend, you agreed to pay. So to have the bank offer you something when they could rightfully say no, is important. So it comes down to this. If you still can't afford to pay the payment especially after filing chp 7 and all your other debts are gone, you need to short sale the property if it's upside down or if you happen to have equity, sell it. I have help hundreds of families through the modification and short sale process. If you or anyone else who is experiencing a similar situation. feel free to contact me.
1 vote
Curly Sue, , Texas
Wed May 22, 2013
If you can't afford your house you need to sell it. It's not the bank's fault.
0 votes
Harold Sharpe, Agent, LAKE HAVASU CITY, AZ
Sun Oct 23, 2011
At some point you need to come to realize a couple of things.
You can not expect to keep the property if you don't pay for it as agreed.
You need to realize you can rent a home down the street usually for less.
You property is a commodity, while you love it and enjoy it, there will be a weight lifted when you leave it and no longer are in this mess.
You may want to talk with some local agents and consider a short sale.
A Short Sale is and has always been the number one alternative to Foreclosure.
Do not abandon your property until the title has changed hands.
Keep in mind you can not keep it if you don't pay for it.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
California Department of Real Estate Broker License # 01312992
0 votes
Nirvail Singh, Agent, Modesto, CA
Sat Oct 22, 2011
Your attorney can call lender and make them aware of the situation and try to negotiate some sort of payment arrangements. You should take to your attorney then a Realtor. Because in bankruptcy situation a Realtor is not authorize/competent to give any legal procedural advice.

Please let me know if you need any further real estate related help fr your house later.


Harpreet Singh
Broker/ CEO
Western Singh Homes
CA DRE # 01853724
Web Reference:
0 votes
Jane, Home Owner, Modesto, CA
Sat Oct 22, 2011
Thanks everyone for the feed back,as far as the modification since we were behind for almost a year they put the backpay in the loan which was fine but still interest rate was going to be 4.125 x30yrs total with taxes and insurance they came up with 2541.00,as far as b/k we just filed we called trustee's office and notified them.Should we try to call lender and see if they can work it out?
0 votes
Rocky G.H. H…, Agent, Ripon, CA
Sat Oct 22, 2011
Hi Jane,

It is a very harsh reality when good people are faced with a large problem like this and I really feel for you. Many of us Realtors shed tears and share laughs with our clients every day around this subject and most folks do just want to keep their home.

I really believe based on what you have written, you need to find a way to come-up with more money that is consistent every month. It may be in the form of another job, an additional job, a side job, cutting back or perhaps getting a few roommates.

Put your mind to it and I know you will find a way to overcome this problem. Never give up and if you do fail, feel good about yourself knowing you did everything you could do.

Make sure you do look into the options, if it comes to it, on my previous entry. Preserving your credit in today’s society has never been more important.



Rocky G.H. Hawrysz
Prudential California Realty
(209) 444-6610 Direct
(209) 433-2000 Fax
License No. 01468373
0 votes
Suz A, Agent, Longmont, CO
Sat Oct 22, 2011
From the information you provide, you might talk with your lender about a lower payment and maybe longer term. You do not have to accept the modification. But, if you don't, the bank likely will proceed with a foreclosure. You will accomplish more, if you talk with the lender and maybe an organization like NACA. NACA can give you guidance.

Best of luck to you.

PML of Longmont, CO
0 votes
Daniel Gueva…, Agent, Salida, CA
Fri Oct 21, 2011

I understand exactly where you are coming from. It can be very difficult to know what decision is the best for you in this situations. I have helped quite a few families/individuals over the last 4-5yrs with a similar scenario. I think to help you answer this question, I would have to say that it depends on whether you are looking for a short term (3-5 yrs) or long term (5yrs +) solution. When banks give/approve a loan modification they are counting on you (homeowner) staying in your home 5-7 yrs minimum. They hope that the real estate market & economic market improves considerably (within the next 7 yrs) & by then most homeowners will be selling the home/financially more stable to afford keeping it. That is why most modifications (like HAMP) will give homeowners a very low interest rate (approx. 2-2.5%) for the first 5 yrs. & then increases gradually 1% annually (to approx. 5-6% max for the remaining years of the 30-40yr term). I'm not sure what type of modification you are being offered? However, I would recommend that you look at your long term financial goal & ask yourself....Do I want to continue to make this payment ($?/month) for the remaining term of the loan? OR, Do I want to plan on relocating within the next 5-7 yrs anyway I would benefit from short selling my home now? And be in a position where I can rent for some time, live where I want/need to be, and be in a position in a few years to buy a home again & buy a home where I will have a more affordable home payment & possibly even a larger home for a lower price? These are all very important questions you may want to ponder on. If you would like to talk more about this, please feel free to call me to discuss in more in details all of your options and/or set up an appointment to meet? Hope this helps.

Thanks for reaching out.

Look forward to serving you,

Dan Guevara
Brothers Real Estate
Modesto, CA
209-312-7809 Cell
0 votes
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