My ch 7 client is in process of modifying her first mortgage. ASC sent me a letter with the terms of the loan modification proposal asking me to file a petition with the bankruptcy court to approve mortgage modification and after the approval is obtained, ASC will generate loan documents. Without the court approval, they will not modify the loan. I have negotiated modifications which were effectuated by the debtor reaffirming the debt under the new terms(the only way I would ever advise a client to reaffirm a mortgage). If the property is still property of the estate, the court has
jurisdiction to approve it. I don’t see that most courts would have
a problem with it, assuming no one objects. If it does involve
reaffirming the debt, then the court certainly has the authority to
approve, but I’m assuming this one does not include a reaffirmation of
in personam liability.