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. Mr. & Mrs. Smith are a 55 and 53 year old couple
who live in Cherry Hill,New Jersey. They were very fortunate to obtain a trial loan modification payment for 3 months which they can certainly afford and once the loan modification is approved, their loan modification should be finalized and they will be able to save their home since they have 3 children.
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. Even though Mr. & Mrs. Smith are extremely behind,
it is worth it for them to roll the over $100,000 they are behind on their mortgage payment and put it in the back of their mortgage since they have a home for their family.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994 or visit our website at TAIEBLAW.COM, 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.