If you are lucky enough to get your mortgage company to offer a meaningful modification of your mortgage while you are in a Chapter 13, you probably can get the Trustee and the Court to agree to allow it. There are a number of issues, however, that need to be addressed.
Before modifying your mortgage you will need to inform your attorney that your mortgage company is willing to entertain a modification. You will also need to present your attorney with the details of the proposed modification. Your attorney will then get the needed permission from the Trustee and/or the Court.
One of the concerns the Trustee and Court may have is how the modification will affect the amount of disposable income you have each month.
Mortgage companies are well known for havingnumerous and continuous problems keeping a proper accounting of the mortgages they hold. This is particularly true in the context of aChapter 13 case where the mortgage company is paid by the Chapter 13 Trustee for the pre-petition arrears, and by the homeowner for the ongoing post-petitionmonthly mortgage payments. Oftentimes, the problem with the mortgage company is that one department has no idea what the other department is doing within the same company. Usually,the one who gets hurt by this practice is the homeowner.
Oneflagrantongoing problem is that of â€œdouble dippingâ€.