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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2863
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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We had went thru bankruptcy and are now losing our home. Our

Resolved Question:

We had went thru bankruptcy and are now losing our home. Our mortgage is with HSBC and they are offering us a deed in lieu of forclosure. A couple months ago I heard that HSBC was one of the banks with faulty mortgages. Do I ask them for an assignment of mortgage or do I just accept the deed in liew of forclosure. They had denied our last loan modification about a year ago, do I ask for help on the payments because we cannot afford a big house payment and the bankruptcy chapter 13.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome!


Welcome to JustAnswer and thank you for the opportunity to provide you with information..


This depends - can you please tell me more about the matter?
  • are you currently in a chapter 13 plan?
  • does your bankruptcy petition's statement of intention indicate that you are surrendering the house?
Thanks!



Customer: replied 5 years ago.
The bankruptcy is on hold since May 31, 2011 and no it does not say that we are surrendering our home.
Customer: replied 5 years ago.
Relist: Answer came too late.
Expert:  Terry L. replied 5 years ago.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

So, the bankruptcy stopped the foreclosure. Assuming you've made all mortgage payments and trustee plan payments, you should be in good shape with the case. I assume that the chapter 13 plan was designed to cure any arrears you had as well.

If you have fallen behind again, they have likely moved to modify the automatic stay, to start/continue foreclosure.

You have several options - sounds like you've approached most of them - loan modification, etc.

As to whether you have a defense to a foreclosure? Depends on your mortgage contract and documents. You should have a foreclosure defense attorney read thru them to see if there have been any violations. They can then present the issue to your lender in hopes of negotiating new terms for you. If you no longer want the home, a deed in lieu allows you to transfer title back to them, avoiding foreclosure. The bankruptcy clears any of the debt, and you might want to talk to your bankruptcy lawyer about any modifications to your plan that may be available, including a conversion to chapter 7 if available/wanted/needed.

Let me know if you have any questions. Thank you.
Customer: replied 5 years ago.
If we accept the deed in lieu of forclosure how long do we have before we have to be out of the house?
Expert:  Terry L. replied 5 years ago.
That would be up to the lender. They can usually factor you in a little time to get your belongings out. Maybe 30-60 days? maybe more? talk to the lender to see what they are looking for.
Customer: replied 5 years ago.
Would it be worth asking for the assignment of mortgage? or trying to get a rate modification?
Expert:  Terry L. replied 5 years ago.
If you are trying to keep it, sure. The loan modification is the way to go, thru the HAMP program. Assigning the loan means they are just transferring it to another provider.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2863
Experience: Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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