I LOST MY JOB WHICH RESULTED IN DISMISSAL OF OUR LAST CASE SINCE WE COULDN’T AFFORD TO PAY THE TRUSTEE AND MORTGAGE. NOW I AM WORKING. CAN YOU HELP ME?
Mr. & Mrs. Smith filed a bankruptcy case 2 years ago and attempted to pursue a loan modification. However, they eventually defaulted on mortgage payments and were unsuccessful in getting a loan modification due to their employment status, so their case was thrown out.
Now, since Mrs. Smith is earning income, their circumstances have changed for the positive since both parties are working and they were able to file a new Chapter 13 so long as they can show a positive change of circumstances.
Also, the Smiths still have to obtain a loan modification which is never any guarantees. However, the Smiths hopefully will have another opportunity and their current filing stopped the pending sheriff sale which was scheduled in January, 2019.
With any application for loan modification, Mr. & Mrs. Smith have to make a determination whether it is worth saving a home if it is under water. Once a loan modification is granted, the mortgage company takes the mortgage arrears and puts it into the back of the mortgage.
So even if you are successful with the loan modification you have to realize that if your home is only with $240,000 and you owe $250,000 principal plus $100,000 arrears, you would be saving a home that is worth $240,000 and you owe $350,000.
Thus, even though you may be successful in obtaining a loan modification, you have to make a determination whether it is worth it to keep the home. However, filing of the bankruptcy gives you the opportunity to try to save the home.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 and schedule a FREE initial consultation.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.