QUESTION
If my Chapter 13 Bankruptcy was dismissed after my loan modification was approved and is the closing process, can the lender decide to cancel my loan?
Asked on Aug 13th, 2012 on Bankruptcy - New Jersey
More details to this question:
The documents was signed along with a letter of approval from the courts.
7 ANSWERS
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
Generally courts do not approve of loan modifications. It is almost always a bad idea to dismiss your chapter 13.
Answered on Aug 15th, 2012 at 5:42 PM
Criminal Law Attorney serving Fremont, CA
at
Steven J. Alpers, A Professional Corporation
Update Your Profile
It is possible. You should have to contact the bank to find out what is going on.
Answered on Aug 15th, 2012 at 5:41 PM
Glen Edward Ashman
Sure. You've had a major change in your finances.
Answered on Aug 15th, 2012 at 5:41 PM
Loan modifications are done at the whim and discretion of the bank. Your bankruptcy has nothing to do with it and yes, your lender can unilaterally not approve the modification.
Answered on Aug 15th, 2012 at 5:40 PM
The dismissal of the chapter 13 and the loan modification are not directly linked, but the dismissal may mean that the payments which were being made through the trustee need to be made directly. The best thing to do is to get on the phone and talk to everyone involved and keep your loan modification plan moving forward. The direct answer is that a loan modification is not a deal until the ink is dry. Either side can back out at any time if they don't like the smell.
Answered on Aug 15th, 2012 at 5:40 PM
Criminal Defense Attorney serving Deltona, FL
at
R. Jason de Groot, P.A.
Update Your Profile
No, especially if the documents have already been signed by all.
Answered on Aug 15th, 2012 at 5:39 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
The lender could cancel same due to the C13 being dismissed as the C13 remaining current may have been a condition of the Loan Modification.
Answered on Aug 15th, 2012 at 10:40 AM