Hi Mike,

I have just received your program.  I would like to ask you a question about my moving forward on the loan modification while I am in the process of a bankruptcy. I need to keep this house, but I did purchase it with an adjustable rate 1st and 2nd. I need to move forward on the bankruptcy within the next 30-60 days.

My question is, do I try to negotiate the loan modification now and disclose that I am filing bankruptcy and all my debt will be cleared in a chapter 7, or do I wait until my bankruptcy is over then move on the loan modification? 

Thank you for your time

XXX XXXXXX

Dear XXXXXX –

Great to hear from you. Sounds like you are thinking clearly.

You will not get a loan mod while in BK. They may not start it if you are about to file.

However, it is possible to file for BK and exclude the home (while you get the mod). You can then include the house later, if you wish.

BK may be able to get rid of 2nd (non-secured) mortgage on the house. So obviously that would be better than any loan mod!

Does this help?

Mike

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