Posted on: 17th Dec, 2007 04:32 am
Last august my wife and I filed chapter 13 and as we got behind on our mortgage payments and other bills. We did not surrender the mortgage but the attorney told us that we were still responsible for the full amount apart from the bankruptcy payments that we have to make to the court. But I'm paying from my paycheck and my wages have gone down because I'm paying for the debt. My wife's still waiting for her social security disability which is pending in the court and I was just thinking if I could lower my mortgage payments? if that's not possible, will I be able to surrender the house?
I am behind on my payments for the past 3 months again and the company hasn't contacted me yet but they might go to court directly. They might ask for the 3 month payments before they go into foreclosure. Is that so, what should now that I cannot make payments; I heard something like in lieu of foreclosure but I don't the meaning of the term actually. Would that apply to me?
I am behind on my payments for the past 3 months again and the company hasn't contacted me yet but they might go to court directly. They might ask for the 3 month payments before they go into foreclosure. Is that so, what should now that I cannot make payments; I heard something like in lieu of foreclosure but I don't the meaning of the term actually. Would that apply to me?
it depends whether you want to keep the property or not. a deed in lieu of foreclosure is when you deed the property to the lender in order to avoid the expense of a foreclosure.
if you have 25-30% equity you may be able to get refinanced.
if you have 25-30% equity you may be able to get refinanced.
Hello Rwilliamsjr,
Welcome to the forum.
Hope you will enjoy visiting the forums.
Welcome to the forum.
Hope you will enjoy visiting the forums.
The point in the Chapter 13 is to restructure your debts to make them payable. If something has happened to cause a loss in income or the plan is just not working, I suggest you talk to your attorney and ask for a restructure of your payment plan. These type of things are done all the time if you can proove the loss of income or hardship. The attorney will likely petition the court and ask you to provide documentation to support your claims.
The worst thing to do is sit back and do nothing, the Judge will have no choice but to dismiss your case and you will be at the will of your creditors.
I know bankruptcy law has recently changed but you really need to talk to your attorney.
The worst thing to do is sit back and do nothing, the Judge will have no choice but to dismiss your case and you will be at the will of your creditors.
I know bankruptcy law has recently changed but you really need to talk to your attorney.
Correct, you need to contact your attorney immediately. Also, contact the mortage company to let them know what you are doing. If you have not made any payments in the last 90 days, you are going to have serious issues with refinancing. It will be difficult to get caught up, however, if you can get the mortgage company to work out a new payment plan with you, it will benefit you long term.
Thanks Stephanie and all for the response.
You are most welcomed kevin_leeman :)
It's our pleasure.
Feel free to ask if you have any further questions.
And by the way, Merry Christmas to you and all the other Mortgagefit community members. Enjoy :)
It's our pleasure.
Feel free to ask if you have any further questions.
And by the way, Merry Christmas to you and all the other Mortgagefit community members. Enjoy :)
I would try and sell the home before doing a deed in leiu of forclosure. Also, contact the mortgage company and see if they can do a forebearance for you which temporarily reduces your payments. Let them know that you expect your wife to be approved for disability so you only need a new months. The lender will want to feel that your income will improve to do a forebearance since it is a temporary reduction in your mortgage payment.