Local Rule 6004-4: MORTGAGE LOAN MODIFICATION BY CHAPTER 13 DEBTOR AFTER CONFIRMATION

RULE 6004-4 MORTGAGE LOAN MODIFICATION BY CHAPTER 13 DEBTOR AFTER CONFIRMATION

(A) Unless provided in a Consent Order resolving a Motion for Relief from Stay, a debtor(s) seeking approval for the modification of a mortgage on real property following confirmation of a plan shall file a motion and shall provide the chapter 13 trustee and any creditor who has filed a request for all notices in the case at least 21 days' notice of a motion seeking such approval unless the notice period has been shortened by the Court for cause shown.

(B) The notice shall state:

(1) All terms of the modification including the term, principal, interest rate and any future payment changes or balloon payments that will occur during the term of the chapter 13 plan;

(2) The current mortgage payment and the new payment after the loan modification;

(3) If the modification results in a higher monthly payment, the source of the funds to be used to make that payment; and

(4) If the modification results in a lower monthly payment, whether the debtor intends to increase the amount of his plan payment.

(C) If no objection is filed within the objection period, the court, in its discretion, may enter an order endorsed by the chapter 13 trustee approving the loan modification.

Comments 6004-4 This rule is new and provides a procedure, including the manner in which notice shall be given and the contents of the notice, for a chapter 13 debtor to request court approval to modify a real property mortgage loan following confirmation of the debtor's Plan. [New Rule effective 12/01/09.]

6004-4 Amendments have been made regarding vesting of property at confirmation, to conform with Trantham v. Tate (In re Trantham), 112 F.4th 223 (4th Cir. 2024). [Changes effective 1/20/25.]