Q: Will Ch 13 Bankruptcy force the bank to do loan mod with homeowner?
If the homeowner was denied loan modification before, will filing ch 13 bankruptcy help the homeowner to have a better chance of getting loan modification?
A: No, it won't force a permanent loan modification, but it can be helpful in dealing with your home mortgage in other ways.
A Chapter 13 plan is especially useful if you have fallen behind on your mortgage and you want a payment plan to catch up. It may also give added leverage in negotiating a loan modification through one of the Federal programs. Lastly, you can 'strip off' a completely unsecured second mortgage, by bringing a lien stripping motion in a Chapter 13 case.
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