Mortgage Forum

Joel Fraser

So after reading many posts I realize one cannot get a loan mod while in Bankruptcy, so my question is: we know we will have to declare bankruptcy whether we get a loan mod or not and we have not started the bankruptcy process yet, but we are four months behind on loan payments on our house. Should we try to get a loan mod first and then when we succeed in that, declare Bankruptcy? Or should we start the bankruptcy process now, wait for that dust to settle and then go for the loan mod? Is either one more treated more favorably by the loss mitigation folks? An important point to this question is that we have a first and a second loan on this house and if it forecloses, the second loan may not get paid and try to come after us, so how does this affect our situation. Should we wait to see if we have to foreclose first then so if the second comes after us we declare bankrupt. If we declare bankrupt and the loan mod is not successful can the second still come after us if we have recently declared bankrupt? I hope these questions make sense, I feel so confused and stressed and I am so grateful for this site, its a ray of hope!