Posted on: 11th Feb, 2008 03:18 pm
I AM IN A CHAP 13 BANKRUPTCY i CAN MA KE THE PAYMENT ON THE FIRST BUT THE PAYMENT ONT THE SECOND IS KILLING ME. IF THE LENDER FORECLOSURES DOES HE/THEY HAVE TO PAYOFF MY FIRST BECASUE i AM CURRENT ON IT. I OWE 403k ON MY FIRST AND 72K on the second my value is about 480K what should I do??
hi hewey,
does the chapter 13 payment include the second mortgage also? if not, then the second lender willing to foreclose will have to pay off the first before conducting the foreclosure proceedings. now, if you wish to leave this home, and accept a foreclosure, you will have to appeal in court to dismiss the bankruptcy. this is because in the midst of bankruptcy, i don't think the lender can foreclose a property.
if at all, you wish to stay in the property, then pay off the first loan through chapter 13 payment plan and repay the second using some savings or cashing out some assets. otherwise, appeal for a dismissal of the bankruptcy and then refinance both the loans into one single payment. as rates are favorable now, so hopefully you can qualify for what you will be able to afford.
take care
does the chapter 13 payment include the second mortgage also? if not, then the second lender willing to foreclose will have to pay off the first before conducting the foreclosure proceedings. now, if you wish to leave this home, and accept a foreclosure, you will have to appeal in court to dismiss the bankruptcy. this is because in the midst of bankruptcy, i don't think the lender can foreclose a property.
if at all, you wish to stay in the property, then pay off the first loan through chapter 13 payment plan and repay the second using some savings or cashing out some assets. otherwise, appeal for a dismissal of the bankruptcy and then refinance both the loans into one single payment. as rates are favorable now, so hopefully you can qualify for what you will be able to afford.
take care
Hi Hewey,
If you cannot make payments or have some problems in making payments under chapter 13, then you can ask for modification of the program. Even after that you cannot make payments then the plan will be dismissed and converted into chapter 7.
Feel free to ask if you have any further questions.
Best of luck,
Larry
If you cannot make payments or have some problems in making payments under chapter 13, then you can ask for modification of the program. Even after that you cannot make payments then the plan will be dismissed and converted into chapter 7.
Feel free to ask if you have any further questions.
Best of luck,
Larry
I agree with Larry.