Answers
Facing foreclosure after filing Chapter 13?
I am going to give the information as best as I can. Hopefully someone can help and hopefully there's even something that can be done. Several months ago we were told we were going to be foreclosed ($8,000 or so behind on a ~$1800 a month mortgage). We live somewhat paycheck to paycheck with no money saved. Anyway, we filed Chapter 13 to try and protect the home. Two months after going through the steps to set up the Ch13, we went to court to face the trustee and creditors, and it was then the trustee said we owed two months worth of payments on the Ch13 (roughly $460 a month), within two weeks. At this time it was either pay the mortgage or pay the $920 to the court. The court was paid and now, a month or two from then we got a letter from our lawyer stating that the mortgage company has been removed from the Ch13 terms due to us missing the mortgage payment. Now they are trying to continue with the foreclosure. Is there ANYTHING possible to try and prevent the foreclosure? Thanks
Best Answer:
Talk to a bankruptcy lawyer, preferably the one that helped you file in the first place. But, if there's not an error in the process, it looks like the mortgage has been dismissed from the bankruptcy, and you can't refile to put it back in. You're on your own in terms of the mortgage now, unfortunately. You might want to try working directly with the bank to get as much time as possible to sell, or work out a repayment plan with the lender. They might not be so willing now, after the bankruptcy, to work with you, but it's worth a shot to try and save the home. Also, you can try giving the property back to the bank through a deed in lieu of foreclosure. But it seems you're running out of time and options, unfortunately.
Answers:
First of all, once you file for Chapter 13, well, not necessarily even file, but once you have talked to an attorney and started the legal process to file, your debtors cannot contact your or take anything from you. If the do, it is against the law. The minute your mortgage company was notified that you were filing chapter 13, they should have pretty much backed off. If they did contact you, they should have been directed to talk to your attorney. I don't know if bankruptcy laws vary state to state or not, but I know those are the bankruptcy laws in Indiana. You may want to consult another lawyer, because none of this really seems right. We went through a typical situation, we fell behind on our mortgage and filed chapter 13 to save our house but we were like 5-6 months behind. But as soon as we started the process, our mortgage company never contacted us for money nor did they pursue foreclosure.
Also, I am a little confused, if you have an $1800 mortgage, how is your chapter 13 payment only $460/month. Your mortgage payment should be included in your ch. 13 payments. You really might want to take a look at your plan, because something just doesn't seem right.
You best ask your lawyer, not the 8-year-olds on here.
What really happened was that in the bankruptcy proceeding you had to reaffirm the mortgage debt; that is, you had to say that you will continue to make the payments from that date on to avoid losing your home because of all the back payments you missed. It appears you did not do that, so now the bank is picking back up where they left off.
You are toast.
wow! i've never heard of this happening before. the only thing i can suggest is explaining to the trustee that you paying them, knocked the mortgage righ toff the list