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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I stopped paying my mortgage in March 2009. Interest only,

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I stopped paying my mortgage in March 2009.
Interest only, RET and insurance: $4180 per month.
I negotiated a loan modification during the summer of 2009, and pay a new monthly payment($1649), since Septemebr 09
In February CitiMortgage told me that I was not eligable for the loan modification after all and now want me to pay all accumulated taxes, payments, insurance, etc.

I am working with them on a "traditional" modification. In the mean time they have started the foreclosure process.

I also have a second mortgage in the amount of $99,5K. I have not paid them either since March 09. The loan was from BankUnited, which went bankrupt at approx the same time. Blacktone Financial picked up the bank at some where between 7-13 cents on the dollar wirth good support from the tax payers.

I was in negotiatrion with them to buy the dept at approx 25 cents on the dollar, but they ended the discussions in October 09. They have not responded to any correspondence since Novemeber 09

I am self employed, Naval Architectural Services.
In 2008 I had 4 clients and an income around 16-20K a month.
By January of 09 all clients had either closed or no longer used outside services.
I had no income between January and September-09.
Since September 09 I have one(1) client but at a reduced level.
My gross income is now approx $7-8K monthly. After business expences I am left with approx 6,300-6,500 gross a month(I no longer have an office).

My mortggage/gross income ratio is more than 0.60 leaving me only 2,500 for all other living expences. My real expences, dramatically reduced during the last year is around 4,000-4,200 a month.

I am divorced and are responsible for two children in college, entering 4th and 3rd year respectively.


Unfortunately this is the scenario that is happening all too frequently. Lenders are putting homeowners on temporary payment plans and then opting not to modify leaving the homeowner further behind. Sorry to say this is legal.

Absent a voluntary forbearance by the lender, a Chapter 13 bankruptcy is the only alternative at this point.

A Chapter 13 bankruptcy would immediately stop the foreclosure action. It could permit you to set up a plan to reinstate your mortgage arrearages. In other words, it could allow you to pay the arrearage over a 5 year period.

The Chapter 13 bankruptcy may also be used to strip away the 2nd mortgage if the first mortgage equals or exceeds the value of the property.

It would be best to retain an attorney. If you cannot, you will want to purchase the forms on line and file them yourself prior to the sale. After you file the petition, you will need to notify the plaintiff.

I hope that the information which I provided was helpful to you.

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,
Ellen and other Bankruptcy Law Specialists are ready to help you