PLEASE HELP!

Jessica

Hi Michelle,

It's good to know that you have been able to find out a way and get rid of the debt. I too felt Chapter 13 can be an option for you. And if you can clear 99% of your debts using this option, then that's too good.

Just see whatever the attorney explains is logical and I hope he's not overcharging you. Smile

Regards,

Jessica.

michelle_70501 · Joined: 15 Mar 2008 Posts: 17 12.08 Dollars($)

Thanks for the advice Jessica. I can easily pay $1,000 a month for 3 yrs and at least this way, I can be sure that the foreclosure will stop. I feel if I pay ASC the $4000 and 1,000/month, after 6 months, they will come up with some new catch and I would have to start it all over again.

Speaking of ASC, on Tuesday someone name Dana from the loss mitigation department called me and said that they need me to fax them a hardship letter and my last two paycheck stubs, because they are still considering me for a payment plan. I spoke to a friend about it and she told me to go ahead and fax the info to them. She said don't give them any "heads up" as to my plan to file bankruptcy. I don't know how long they are planning on stringing me along, but they will get a wide awakening as soon as the papers are filed. Oh, btw, my attorney said he will have them put the insurance check on my back payments, to lower that amount. When I told him that I requested they do that and they told me no, he said, "They will do it." It feels so good to have someone with "power" on my side.

Samantha

Well, that's good news Michelle. The attorney knows how to negotiate with the lender so that they'll include your insurance check to lower your unpaid debt.

As for informing the lender about bankruptcy, I think they'll come to know when your trustee shows them the repayment plan. The lender has the right to object to such a proposed repayment plan. But don't inform them before you file. Let your attorney/trustee decide when to inform your lender.

Regarding the repayment plan, well, it will last for 3 years minimum and only after that the lender has the right to suggest an alternative plan or may be allow you to refinance so that you can pay off the entire mortgage and not just the dues.

The hardship letter can be sent to the lender; usually it is sent when you need to go for a short sale or deed-in-lieu or any other plans to get out of mortgage. So, you can forward a letter to the lender and wait to see what they have to suggest. Even if they can't do anything because bk ch13 will start off soon, at least they can't blame you later on saying you haven't send them any hardship letter.

Hope this helps...

God bless you.

Samantha

michelle_70501 · Joined: 15 Mar 2008 Posts: 17 12.08 Dollars($)

Quick question to anyonw that knows the answer: When filing bankruptcy, do you continue to pay your mortgage in addition to the bankruptcy "fee" or is that included in the bankruptcy "fees?" I am just waiting for all the paperwork to be done so I can go sign it, but I was just wondering if anyone knew the answer before my appointment? When I first spoke to my attorney, that wasn't mentioned, but a foreclosure specialist I spoke to told me to check into it. Does anyone know the answer?

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi Michelle,

Welcome back.

I think you are filing chapter 13 rights. Then you will pay back the mortgage on a repayment plan. You will need to pay the Bankruptcy fees separately.

BTW have not taken help from a BK attorney?

Best of luck,
Larry

Guest 0.10 Dollars($)

No, the mortgage dues and bankruptcy fees are separate items to be paid off.

cliff · Posted: Tue May 06, 2008 1:08 pm Post subject:

Hi Michelle, I've been folllowing your situation and I'm glad to hear you have found a solution to your problem at ASC. They are one of the toughest loan servicers out there.

Yes, within your bankruptcy you will still need to make your mortgage payment and your trustee payment. BE SURE AND ASK YOUR ATTORNEY THAT THE $1,000 INCLUDES YOUR TRUSTTEE PAYMENT. I've run into countless people where the trustee payment was not included in the bankruptcy payment initially quoted and a trustee payment is typically $600-$1,000.

Once you file your bankruptcy the mortgage company will immediately attempt to find a way to have your bankruptcy lifted. The easiest way to allow them to do this is to miss a bankruptcy payment. So carefully plan your finances and under no circumstances be late on your bankruptcy and/or your trustee payments.

Best of luck Very Happy

michelle_70501 · Joined: 15 Mar 2008 Posts: 17 12.08 Dollars($)

New development: Today I received an overnight delivery from ASC. It appears that he loan modification was approved. They are offering me payments of $674/month, with no down payment, starting on June 1, 2008. I am really torn as to what to do. On one hand, I was only filing bankruptcy to keep from losing my house, but now that ASC has modified my loan, if I agree to the modification, I won't lose my home. My biggest fear is that somewhere down the line, they spring something new on me and put me back in this same situation. Regardless of what I do, I will have the money taken straight out of my checking account, so I can be sure it's paid on time and every month. What do yall think?

Pros for Modification:
-Lower payments then bankruptcy
-Less then 10 yrs to improve my credit
-Receive insurance check and finish repairing home
-House no longer in foreclosure
-Most bad marks will be off my credit within 4 yrs

Cons for Modification:
-Still dealing with ASC (at least until I can get refinanced)

Pros of Bankruptcy:
-All debts (even charge offs) will be paid out in 3 yrs
-House won't be in foreclosure
-Insurance check will be applied to delinquent amount

Cons of Bankruptcy:
-$1000 for debts, + the $622 per month in mortgage payments
-Insurance check will be applied to delinquent amount
-Will stay on my credit report for 10 years
-No income tax refunds for 3 yrs

I am sure there are some pros and cons that I forgot, but those are the ones that popped into my head right now. As you can see, I have given this a lot of thought, but I am still not sure what to do (I have to make up my mind by mid-day tomorrow, so I can be sure to stop the sale scheduled for next week). Tomorrow morning I am going to my bankruptcy attorney's office and they are going to look over the modification paperwork, to make sure I won't get screwed if I sign the modification paperwork.

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi Michelle,

Loan modification is a better option than filing bankruptcy. If the bank is ready for the loan modification with a lower monthly payment then why would you file bankruptcy? I think you should go for loan modification....... you can not only save your credit but also avoid foreclosure.

Please update us with your situation and what you decide.

Best of luck,
Larry

0.10 Dollars($)

Hi Michelle,

Great news!! Bankruptcy is only a last option I have dealt with many people who did a bankruptcy and regreted it! If they agreed to modify your loan do it! In addition, it will not take 4 years to repair your credit at most it should only take one year. Finally, congress is attempting to pass a bill that would allow people who have had or are having trouble with thier mortgages the ablility to refinance. So everything is working in your favor.

With the new plan are you on a fixed rate?

cliff · Posted: Thu May 08, 2008 8:22 am Post subject:

Sorry the privous post was me I forgot to log back in.

michelle_70501 · Joined: 15 Mar 2008 Posts: 17 12.08 Dollars($)

To answer your question cliff, yes I am still on a fixed rate (my same 6.125% interest rate that I started with). Also, I said that it would take about 4 yrs, because by then most of the bad items will be off of my credit report and I can hopefully get a good interest rate when I attempt to refinance.

on Thursday I went to my bankruptcy attorney and he looked over the loan modification paperwork and told me to sign it and go ahead and send it back. He said the modification was a good idea, but his only concern was that the paperwork would not be processed in time. I have a sale date of May 14th (Wednesday of next week) and he said since these mortgage companies do so many modifications, my paperwork may get lost in the shuffle. He told me that he would call the sheriff's dept on Tuesday morning and find out if the sheriff's sale was called off. If it isn't, he said he would go ahead and file my paperwork, that way the sale would stop with the bankruptcy. If the sale is called off, then he would not file my bankruptcy paperwork. So, Thursday afternoon, I sent the loan modification paperwork back (in the express mail envelope they sent me) and on Saturday morning, I will start bugging to make sure the paperwork is processed on time and the sale is stopped.

As soon as I find something else out, I wlll let yall know. Thanks so much for assisting me through this VERY rough time. I would have been totally lost without this forum.

cliff · Posted: Fri May 09, 2008 3:49 pm Post subject:

I'm glad to here your attorney was able to review the modificaiton. Whoever is assigned to your case at your mortgage company should stop the foreclosure sale as soon as they receive your signed paperwork.

Keep us posted.

michelle_70501 · Joined: 15 Mar 2008 Posts: 17 12.08 Dollars($)

Today I found out that the sheriff's sale was cancelled by the mortgage company. So, I talked to my bankruptcy attorney and they are going to refund me some of the money I paid them (they did all the paperwork, only was waiting to file it with the courts). I learned a very valuable lesson from all this and I know never to miss a mortgage payment again (and if I do, to call the mortgage company ASAP). Thanks everyone for the advice I really appreciate it.

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi michelle,

Glad to hear that the sheriff's sale was canceled by the mortgage company. So I hope you are going with the loan modification right? If so hope you be able to afford the payments.

It is really necessary for the borrowers how much they can afford. They take mortgage with high interest rate and in the midway they understand that they cannot afford and faces foreclosure.

Best of luck,
Larry

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