For these particular clients who were in Chapter 13, the bank delayed and delayed. The bank continually asked for more documentation and upon our providing same would spend months reviewing it. Finally, at a loss mitigation status report in bankruptcy court Judge Drain told bank's counsel that if they asked for one more piece of paper they would be required to have a bank officer appear. Three days later they asked for more documentation and were required to appear in court. On the court date the bank sent a representative from Texas to White Plains along with high powered counsel from one of the country's most respected law firms based in Virginia. The bank representatives did not have much to say, but promised a response in the near future.
About two weeks later the bank's attorney contacted a Westchester County bankruptcy lawyer and told us that a loan modification had been proposed that did not change the interest rate. While seemingly disappointing as it turns out the modification lowered the monthly payments by over $300 and tacked the arrearage on the back of the mortgage. Because our clients would have had to repay the arrearage in the Plan, their Plan payments were also lowered.
Another fine result based on the Bankruptcy Court's loss mitigation procedures. Once again we applaud Judge Drain for refereeing this modification to a successful conclusion.
If you need to file a Chapter 13 bankruptcy or loan modificaiton, contact Bronson Law Offices, P.C. today to set up a consultation.