Can my cosigner sign modification papers in a bankruptcy? 12 Answers as of January 19, 2011

My mother is a cosigner on my home loan. She filled for bankruptcy 2 years ago. I am behind on my home loan and want to do the loan modification program. Is my cosigner able to sign the modification papers?

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Christopher Legal Group
Christopher Legal Group | Shawn Christopher
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.
Answer Applies to: Nevada
Replied: 1/19/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
If your mother at the time of the bankruptcy was then a cosigner and she listed on her Petition the obligation she was cosigner on, then, depending on whether it was a Chapter 7 (discharged) or Chapter 13 (not discharged until plan completed). If she was discharged then she is no longer obligated as a cosigner. If she has a Chapter 13 plan, then she would have to get the Chapter 13 trustee's and the bankruptcy court's permission for any new obligation. Assuming the loan modification reduces the obligation she probably would get permission.
Answer Applies to: California
Replied: 1/18/2011
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
Yes, that shouldn't be a problem.
Answer Applies to: New Hampshire
Replied: 1/15/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
I don't see why not, but I would recommend that she not.
Answer Applies to: South Dakota
Replied: 1/15/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
If mom filed bk and listed the mortgage debt on her bk papers then she is no longer liable on that debt due to the bankruptcy. You would technically not need her signature and you should let the lender know. Otherwise, yes, a co-signer must consent.
Answer Applies to: California
Replied: 1/14/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    She can, but why would she want to? She is now not responsible for that debt.
    Answer Applies to: California
    Replied: 1/14/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Yes, a cosigner can sign modification papers in a bankruptcy.
    Answer Applies to: Virginia
    Replied: 1/14/2011
    Law Offices of Steven A. Wolvek
    Law Offices of Steven A. Wolvek | Steven A. Wolvek
    Depends on the Chapter of Bankruptcy filed - Chapter 13 would require a motion to approve her doing a loan modification.
    Answer Applies to: California
    Replied: 1/14/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Is she still in bankruptcy? You don't give enough facts to answer your question. What chapter did she file? What is the current status of the case? If she is still in bankruptcy, then she cannot co-sign without court approval, which likely would not be given. However, this also depends on how she is treating the property in her bankruptcy case, and she can seek court approval to do the modification herself.
    Answer Applies to: California
    Replied: 1/13/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    That is an issue that you would have to address with the mortgage company. It is your mortgage company the one who will decide who needs to sign the modification papers.
    Answer Applies to: California
    Replied: 1/13/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    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.
    Answer Applies to: California
    Replied: 1/13/2011
    Stuart Jon Bierman  Attorney at Law
    Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
    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.
    Answer Applies to: New Jersey
    Replied: 1/13/2011
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