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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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spoke yesterday about mortgage loan and home equity loan ...

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spoke yesterday about mortgage loan and home equity loan ... and trying to strip home equity if I filed chapter 13 or just pay up front per their offer .. more questions

cortrightlaw : Yes I remember what additional questions do you have?
Customer:

i think the only way to maximize the profit is to pay off the amount of the home equity loan upfront .... my reasoning, and I think this is correct ... if the 1st mortgage and the home equity would be covered by a sale of the home .. they'd both be attached correct?

Customer:

I assume the home equity lender offered 54 vs 108 thinking Chapter 7 ...which they wouldn't want at alll

cortrightlaw : Well that seems correct if you were to pay off the second that would maximize your home equity. But you need to pull up your states bankruptcy exemptions to see how much home equity you can protect in a bankruptcy. Also there could be an issue of making a preferential payment to one creditor being the second over your other creditors.
Customer:

i thought as much .........not sure if you can answer this .. but both my 1st mortgage and especially the home equity would prefer i don't allow the dc foreclosure process to go into effect .... there is a new mediation period of 180 days and its taking 3 years .... do people approach them and ask them to lower the balances to avoid such a process ....thought the foreclosure would happen due to my actions ... would they not want to save the costs and the 2nd lien holder the entire amount of a chapter 7 and may make a deal?

cortrightlaw : Depending on the lender some first mortgages will negotiate new terms but it usually takes months and lots of times they are just get declined. And most are not reducing balanced now but it does happen so it is always worth the effort especially if your only other option is to lose the home. I wish you were local because you really need to go sit down with a good bankruptcy attorney to help you develope a good plan, there are so many considerations and variables that need to be considered.
Customer:

i plan to sit down with one ... there is no rush with the home ... DC isn't foreclosing on any homes .... the city govt put some ill advised rules in place that made all the mortgage insurers flee .. new dc law up to 180 days of mediation and if anything from the envelope being the wrong color .. can void a foreclosure ... thus the title companies and mortgage insurers have been lobbying for needed change ..... it's taking three years here now it nuts

cortrightlaw : We are experiencing the same thing in California I have clients who have not paid their mortgages for 5 years and are still living in the homes. That could be a way to save a lot of money and take what you already have and go pay cash for something very affordable at today's prices.
Customer:

true my homeowners association ... a building of 4 is threatening to foreclose ....do you know anything about liens?

Customer:

you must actually

Customer:

our condo board of 2 with our management company .. hired to run a building of 4 units ... in which the pres and trea can't explain where 50 K went ... they hired a lawyer sent me an notice to lien with acceleration letter ... the lawyer had my unit listed as the wrong number had the years wrong etc ... I don't think this matters because its just the notice.

Customer:

but per our condo doc and dc gov regs ... if i ask question the total they will provide me the detail.... I questioned the entire amount based on just the the many errors in his letters which the total on page 1 didn't match page 2 ...

Customer:

to my surprise he ignored my request which was signed for by his office 28 days ago - he has 10 days to respond or the lien is unenforceable .... any clue why he could be so careless

Customer:



true my homeowners association ... a building of 4 is threatening to foreclose ....do you know anything about liens?






1:03 AM



you must actually






1:05 AM



our condo board of 2 with our management company .. hired to run a building of 4 units ... in which the pres and trea can't explain where 50 K went ... they hired a lawyer sent me an notice to lien with acceleration letter ... the lawyer had my unit listed as the wrong number had the years wrong etc ... I don't think this matters because its just the notice.






1:06 AM



but per our condo doc and dc gov regs ... if i ask question the total they will provide me the detail.... I questioned the entire amount based on just the the many errors in his letters which the total on page 1 didn't match page 2 ...






1:07 AM



to my surprise he ignored my request which was signed for by his office 28 days ago - he has 10 days to respond or the lien is unenforceable .... any clue why he could be so careless
















 

Customer:

not sure if you were in different page so just c and p's

cortrightlaw and 3 other Bankruptcy Law Specialists are ready to help you
The condo liens can actually be tougher then the lenders, don't have much knowledge on condo association law, you would really need to discuss this portion of your question with a real estate lawyer.