Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.
A chapter 13 would force the bank to stop the foreclosure, and allow you to pay any arrears over a 60 month payment plan, as well as reducing your credit card debt by 80-90%. The modification should be tried however, to guarantee the foreclosure is stopped a bankruptcy should be filed atleast two to three days prior to the sale date.
In my experience a modification takes time and certainly more time than 3 weeks to be approved.
Thank you for the information about what Chapter 13 would do. I assume I would not only have to prove I can make the payments on the arrearages, but also make the payment I've been trying so hard to get changed through principal reduction to something closer to actual current value and/or interest rate reduction.
I don't suppose any of that could be worked into the Chapter 13 deal???
Otherwise I would not be able to afford the arreages payment AND the inflated mortgage payment (we maxed out the mortgage to help with down payment on a different home thinking this house would sell quickly - unfortunately did not sell after a year of paying 2 mortgages then I got sick, etc...).
I will certainly try to get them to agree to another home modification application - that alone stops the sale date (at least it did the last two times), and buys us time to do all the paperwork for the modification application and then my experience has been they put us on a payment plan while they take many months to assess the application. I was hoping that since this time the application is coming from me and the deceased, that they would give me a chance to see if I qualify for the modification.
Another question rises from this...the last two times we did the modification application to stop the sale date, I used my lawyer RE lawyer who I've spent 12K on. Do you think this is something I should be able to negotiate myself since I know the ins and outs of what happened before, or do I need to hire a lawyer to negotiate them stopping the sale date to reconsider another modification application? There are so many companies/law offices that advertise they will do this for you, while the banks claim not to be taken advantage of by attorneys advertising this service as it is not needed. What do you think?
Ideally I'd like the BK attorney to do both - get a loan modification and a Chapter13. But I get the feeling a BK attorney won't touch negotiating with the bank about a loan modification to stay the sale date, right?
Thanks again for your responses in advance.
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