Can my cosigner sign modification papers in a bankruptcy?

She might be able to, but there might be no reason for her to do so. If she surrendered her interest in the property as part of her bankruptcy, then the lender may choose to only deal with you on a modification. A big problem may end up being what your lender requires. Lenders all seem to have different rules and guidelines, plus their employees do not always understand the legal concepts that they are assigned to handle. It makes the process quite frustrating. Good luck.

Yes, that shouldn't be a problem.

If your mother filed a bankrutpcy case two years ago she should be done with her bankruptcy case by now unless she filed a Chapter 13. If she filed a Chapter 13 case then the modification agreement needs to be approved by the bankruptcy court after you and she signs it. If she is out of bankruptcy because she filed a Chapter 7 case two years ago, then the modification does not need to be approved by the bankruptcy court since she is no longer in bankruptcy. Her case would be closed by now if she filed a Chapter 7 case two years ago. You and your mother would simply sign the modification agreement if her bankruptcy case is over. Technically your mother is not a co-signer if it is a mortgage. There is no such thing as a co-signer of a mortgage. If her name is on the loan then she is a co-owner of the property and a co-debtor of the loan. Both of you would have the same rights and obligations to pay the mortgage. Therefore, the bank would require both of your signatures on the loan modification agreement. A co-signer is used when the bank wants to have someone else responsible for paying a loan who is not on title to the property (not a co-owner). That is used with vehicles sometimes so that in case you do not pay the car and it is repossessed the bank can go after the co-signer for the deficiency if they cannot collect from the primary borrower. The deficiency is what is still owed after the vehicle is repossessed and sold at auction in the case of a car loan. Co-signers are also used with personal loans when the bank wants to have someone with better credit and income to go after in case the borrower defaults.

I think the answer is yes, provided that it is closed bankruptcy case and if, of course, the loan company agrees. If your mother's BK case is still open then the permission of the Trustee might be needed. New Jersey Trustees are usually very cooperative when they deem the request to be reasonable.