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I have a friend that have a loan modification with Wells Fargo, this was done after chapter7 the house was not reaffirmed and was included in the chapter7.The bank did a loan modification after the fact. My friend is still in the house its been a year and my friend has been paying on time each month sense.The mortgage doesn’t show on their credit report and the bank said they would have to re-fi to get it to show on a report. My question, can this person walk away from the home and nothing be done to them..(foreclosure) Its like they don’t own the house it show on the credit report as discharged in bankruptcy……..

1 Thought on Home loan modification?
  1. Reply
    May 16, 2011 at 5:51 am

    No, they cannot just walk away. Because they can’t see it, it doesn’t mean it’s not there. New mortgage bankruptcy laws protect the homeowners who cannot get help from their mortgage servicers by giving the judges legal power to force banks to either cut the interest rate on a mortgage, the principle balance or all the above.

    This is taking the decision of “to foreclose or not to foreclose” out of the mortgage servicers hands in some cases and allow bankruptcy judges to have the 100% discretion to decide what is affordable long term for the homeowner. Meaning a long-term affordable loan modification.

    Paul A
    Modify Your Own Loans –

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