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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37824
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I am in a Chapter 13 and due to financial difficulties due

Customer Question

I am in a Chapter 13 and due to financial difficulties due to illness of a dependent adult child I had difficulty making the Trusttees monthly payment $1538 and the modified mortgage of 2.900. I was advised to apply for another Loan Modification by the Bankruptcy Department of my mortgage lender. In the meantime, my lender petitioned to the Chapter 13 for a right of stay. My attorney and the Trustee had this delayed to find out if the Loan Modification was approved. It was not and I chose to dispute the reason which was communicated to me in e-mail and phone communication with bankruptcy rep for my loan. They said my situation has not changed and I indicated in my application and Hardship letter that it had changed and I no longer had the responsibilities that put me behind in payments. I have tried to get advice on how to right the proper dispute letter for this denial of modication but cannot find it on the web......many promises but no deliveries. I am afraid to write this letter incorrectly as I am working hard to save the family home I have been in for 69 years. My home is now of lower value than the mortgage. Thank you for your advice.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 3 years ago.

Since every loan servicer has different workout rules, there is no "one-size-fits-all" dispute letter. Even if there were such a letter, the loan servicer cannot be forced to reconsider your loan modification, if it believes that to do so is not in the lender's best interests.

This leaves you with your only true recourse as objecting to the loan servicer's motion for relief from stay, and simultaneously making up any deficiency in your payments which have occurred since the Chapter 13 plan was confirmed. That would be the only way that the court is likely to maintain the stay against the loan servicer.

So, while I understand your desire to write a dispute letter, and I would encourage you to do so, I think you're probably going to run into a dead end with this approach.

That said, if you would like to paste the text of your contemplated letter in your next Reply, I'll be happy to look at it and comment if I see any serious errors.

Please let me know if I can be of further assistance.