Can I file Bankruptcy on my home if were in the modification process?

If you're in the modification process and the bank isn't attempting to foreclose on you, then bankruptcy wouldn't do you much good. A Chapter 7 would be useful if you want to walk away from the house. A Chapter 13 would be helpful if they're trying to foreclose on you, it would allow you to pay back the arrearages over a 5 year time span. The only way a bankruptcy could help you reduce the principal amount of the loan is on a wholly-unsecured second mortgage. Bankruptcy also could not affect your interest rate on the mortgage. My advice is to see where the modification process takes you. If you can't afford your house any longer or the bank tries to foreclose, go see a bankruptcy lawyer at that point. Hope this helps and best of luck!

You can file bankruptcy and having applied for a loan modification program will not prevent you from exercising that right. In many instances, filing bankruptcy will cancel the application for the mortgage loan modification. You may wish to review the detailed options you can exercise with a local bankruptcy attorney. BTW, I received notification yesterday that BOA had reduced the principal balance of a mortgage loan by $67K for one of my Chapter 13 clients. So you just never know! Hope this perspective helps!

Absolutely. And working through modifications while in bankruptcy has certain advantages from our experience. As Ms. Bunce says, modification results are occurring in bankruptcy and we've also seen several principal reduction mods occur that way. Good luck. Evan A. Nielsen 1255 W. Colton Ave., #506 | Redlands, CA 92374 Main: 909.363.4658 | Fax: 480.304.3211 [email protected] www.NielsenLawGroup.net Mention this Post for a free consultation.