Definitely yes. Bankruptcy is often just a bandaid you put over the foreclosure sale until you get a loan mod approved.
Today I was in Judge Thurman’s court on a Motion to Approve Loan Modification and Motion to Modify Chapter 13 Plan. The debtors had finally obtained a loan mod. This took about a year of phone calls, re-sending faxes, and constant quasi-harrassment of the mortgage company by the debtors until it was approved.
The loan mod took approximately $25,000 in mortgage arrears and put them at the end of the mortgage. The debtors didn’t have to make additional payments to catch up on the $25k, and now they didn’t have to pay that $25k back as a part of their chapter 13 plan. This meant that I could drop their chapter 13 plan payment from $791 a month to $150 a month, which was a welcome change to their budget.
We had originally filed their chapter 13 plan because there was a pending foreclosure, and they needed to stop that foreclosure sale and propose a way to catch up on those missed payments. In the bankruptcy, our 5 year plan provided for $25,000 of catch up payments to the mortgage company in addition to making regular mortgage payments. It was a tough plan, but they stuck with it for over a year until the loan mod came through.