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Already filed chapter 13 what can I do now?

Posted on: 06th Jun, 2007 06:17 pm
i filed chapter 13 to avoid foreclosure. due to loss job. got another job
however at lower pay. can't afford to keep paying the chapter 13 and
the mortgage. i could pay extra $200.00 per month to catch up the past
due. dismissing the bankruptcy because i can't afford the bankruptcy payments and the mortgage. the other creditors will work with me if i dismiss.
however i probably am behind $8,000. so i don't think they will go for
that. so now i am facing foreclosure again as the lender has asked for
a relief of stay because i am behind again. had to go through a few jobs
to find one that was enough money to pay some of my bills.

i have not talked to the mortgage company yet. don't know what to ask for
at this point. i have a potential buyer just waiting to see if they qualify. so
does anybody think they will give me time to sell? what should i ask for?
If it would be possible, mortgage company would prefer that the house gets sold and they be able to recover their balance instead of foreclosing. You tell the mortgage company about the buyer who is interested in purchasing the house and give them an estimate of time within which you are expecting the house to get sold. It will depend upon mortgage company on whether they accept your request to provide you with some more time or foreclose.

Posted on: 06th Jun, 2007 06:43 pm
I too think that they will consider your request as you have found a buyer willing to purchase the house. You should contact the mortgage company as early as possible and know if some more time will be granted to you so that the house can be sold.
Posted on: 06th Jun, 2007 07:20 pm
has anybody ever heard of a loss mitigation dept working with someone
at this stage for some kind of repayment?
Posted on: 06th Jun, 2007 09:20 pm
Hi Guest,

Welcome to the forum.

From what you've mentioned here, I can understand that the automatic stay in bankruptcy has been cancelled so that the lender can carry out any action such as foreclosure against you. But I am not sure whether the bankruptcy is dismissed fully or you have requested for the dismissal. Anyway, if you have got a potential buyer who is likely to be approved for a home loan, I think you should go ahead and have a talk with the mortgage company. At least, if you do not say that you know of such a buyer, you can just ask the company if you can sell the property and avoid the foreclosure.

Alternatively, you can also ask the lender about loss mitigation techniques that may help you save your home and avoid a foreclosure.

Hope this helps...

God bless you.

Posted on: 06th Jun, 2007 09:55 pm
justme: The moral to this story is "always talk to your mortgage company first!" You need to understand that your contract with the lender is important to them -- they would rather not cover the cost of disposing of your foreclosure when they can help you reposition your monthly payments to allow you to recover from any disruption of income for whatever reason. Lenders are reasonable animals -- they agreed to do business with you in the first place, didn't they?! Level with them -- they may be your best resource at this point. Also, there are lenders out there who will buy you out of your bankruptcy, but you would need some equity in the property. You haven't described the home value and your mortgage debt. Also, a hard-money approach might allow you to redeem your current debt. Stay on target, and work with people willing to give you good advice. Hopefully you find an agreeable person on the other end of the phone at the mortgage company -- if your only contact is the servicer of the mortgage, you should request to speak to someone other than simply 'customer service', since you are 'concerned about losing your home' -- sya it just like that! Good Luck!
Posted on: 07th Jun, 2007 12:40 pm
Yes Charles, a borrower in this industry should be having no problems if he is working with some good lenders - I mean those who really offer some great servicing and care for their customers. They do that extra bit to keep their customers happy and satisfied and out of the fear of losing their homes. Talking to such lenders will really help anyone coming across loan related problems - at least they will suggest a way out of such problems which bother home-buyers and borrowers.
Posted on: 08th Jun, 2007 05:41 am
Thanks for the great answers.

Just some more info. I did talk to the lender when I first got into trouble.
However the deal they were offering was impossible for me to keep. They
offered me a forbearance adding about 600.00 to my monthly payment to
catch up. My payments were already 1370.00 for a 137,000.00 house.
My interest rate is 10.2% Which my DTI was already at 51% when I purchased the house. I know I should have known better. I just let my wants outweigh would I knew I could actually afford.. And I could have
afforded the house at a normal interest rate. So I figured if I hang in there for a year I could refi. But before I could get there my job shut down operations in the area I live.
Posted on: 08th Jun, 2007 07:26 am
Problems, problems, problems --- well, let's start by identifying the current value of your home -- you mention this the original purchase price?...did you finance it 100% with no down payment? your financing one loan or two? Your answers will determine your next step. Please respond. Thanks!
Posted on: 08th Jun, 2007 11:01 am
You certainly did take too much risk with the dti at 51% at the time you took the loan. And the rate was also too high, 10.2%. Which type of mortgage was it?

Posted on: 08th Jun, 2007 05:01 pm
I actually owe more than I paid for it now. I paid $134,000
The payoff is $137,000. The loan is a arm which is about to go
up how it can go more than 10.2 is beyond me. One loan.
I doubt it will appraise more than $137,000
Posted on: 08th Jun, 2007 08:01 pm
Ok I can understand that you will have to pay more than is required. But what about the buyer that you've mentioned previously? Is he willing to pay your asking price?
Posted on: 09th Jun, 2007 04:51 am
Yes willing to pay 137,000 but the problem is they won't qualify for
the loan if the appraisal won't support it.
Posted on: 09th Jun, 2007 05:43 am
But then first of all the buyer needs to go through an appraisal.
Posted on: 09th Jun, 2007 09:53 am
When a buyer has good reserves, he can finance up to the appraisal value and then add his own cash, if he really wants the property. In this way, your property might sell for 140K+ with you standing firm on your price.
Posted on: 10th Jun, 2007 10:50 am
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