We applied for a mortgage modification. Mortgage company sent us paperwork to sign and return. It stated the new balance and that the next payment was due 7/1. We returned the papers and a check for the payment and have made a payment every month since. Now they are saying that in order to complete the modification they want a payment equal to 2 months. This was not stated anywhere in the papers we signed and was never told to us when we applied. I don't know if we should just stop making payments and pursue a chapter 13 bankruptcy to ensure that we don't lose our home. We don't have the $ to make a double payment, but we've also made 4 payments since we signed the paperwork.
1 Answer from Attorneys
The decision by a mortgage company to grant or deny a loan modification is purely discretionary. Therefore, if they deny you, for whatever reason, your next option is indeed a chapter 13. That will force them to accept the regular payments after you file, plus an amount sufficient to cure the arrears over five years in monthly payments to a trustee. However, if you cannot afford that, you may ultimately lose the home.
I trust this answers your questions but feel free to call or e-mail me on a free initial basis.
Very truly yours,
Matthew R. Nahrgang, Esquire
35 Evansburg Road
Collegeville, PA 19426
(610) 489-3041 ph
(610) 489-3042 fax
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