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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I own a home in the state of Washington. My girl friend a I

Customer Question

I own a home in the state of Washington. My girl friend a I or both on the loan application. I applied for a loan modification with my lender. I was told at first that we didn't qualify because we made a good income and could afford the payment. Because we owed more on the house than it is worth, I hired an attorney firm to assist me in getting a loan modification with my lender. I've been on a modification program now since January 3, 2010. I've made all my payments on time but were denied a permanent modification. My girl friend has since moved out leaving me along with the mortgage. Now, the lender claims that I'm eight months behind in payments and owe $34,563.45. The lender has given me 23 days from receipt of their notice to cure the default amount or they will foreclose on my property. And since I'm the only one in the house with income I do not qualify for any of the seven other modification program that the lender has to offer.

Can you help me?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open forum. Do you understand and accept these provisions as well as's disclaimer?

Please respond with a Yes or No to continue.
Customer: replied 6 years ago.
Expert:  Ellen replied 6 years ago.

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.

Ellen and 2 other Bankruptcy Law Specialists are ready to help you
Expert:  Ellen replied 6 years ago.
To reply to your other thread -- a lender is not required to modify.
Customer: replied 6 years ago.

If I file for Chapter 13 bankruptcy, will I be allowed to keep my house? What happens to my credit rating and other creditors?

Expert:  Ellen replied 6 years ago.
Yes you would typically be able to keep your house in a chapter 13. The purpose of filing the Chapter 13 prior to the foreclosure sale would be to allow you to reinstate your mortgage over a five-year period and thereby avoid foreclosure. A chapter 13 is a negative strike on your credit report -- a foreclosure is also an equally negative strike in your credit report.
Customer: replied 6 years ago.

A local attorney says that filing a Chapter 13 will only delay the foreclosure and anger the bank because the bank will just decline it. He says that I can not file for bankruptcy against a secured loan. He said that the bank's investors own the loan and will not allow the bank to accept such terms and risk their investment.


Is this true?

Expert:  Ellen replied 6 years ago.
No it is not true. I suggest that you meet with a local attorney that specializes in bankruptcy
Customer: replied 6 years ago.
Thanks for your response... I will do that.
Expert:  Ellen replied 6 years ago.
you are welcome I hope it works out for you