Whether in a chapter 13 plan, waiting for your discharge in a chapter 7 or just starting the bankruptcy process, now is a good time to wade into the mortgage modification morass. While in bankruptcy, your lender will need consent from your attorney to speak with you. FreshStart Law Office provides a monitoring service through a third party web portal that may help streamline the process for certain lenders.
A loan modification may work better while in bankruptcy because you, the consumer, now have some power, namely to walk away from the mortgage. Also your budget has been filed with the Court and reviewed by at least three different parties so the interminable back and forth that has characterized so many of the modification attempts we have seen will end. As of June 1, 2010 bankruptcy schedules (income and expense) can be used to determine the borrowers new payment.
These are the June 1 revised guidelines. Be sure to coordinate with your attorney or get a referral from him or her.