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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Im currently underwater on my 1st mrtg.(90K and my 2nd mrtg

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I'm currently underwater on my 1st mrtg.(90K and my 2nd mrtg ((55K).I wish to delay any foreclosure action for as long as possible. I've received a notification from my first lender (BOC) but not from my 2nd (RBC Centura) I have approx. $50K in savings but I also have 2 girls in college. My wife is a cancer survivor but requires regular chech-ups. I have been diagnosticed with 3 different cancers in the past year. We filed a Chapter 7 five yeas ago but reaffirmed our mortagtes. Our current monthly expenses are $7,500 (including mortages) with income of$3,396. What kind of actions can I expect the lenders to take and how can I best delay them.
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

Hello,

I am a Florida licensed attorney. I will do whatever I can to answer your questions!

Don't Forget that the deposit you placed to ask this question is not used to compensate me until you rate my service ! Please Remember that when you are asked to give a rating, you are rating My Service and not this website itself or the law .

Your Question - What kind of actions can I expect the lenders to take

My Answer - One or both of the lenders will file a foreclosure action and obtain a deficiency judgment for any unpaid amount of the mortgage(s).


Your Question - and how can I best delay them.

My Answer - A chapter 13 bankruptcy may delay the foreclosure and/or, better yet, strip (remove) the 2nd mortgage and allow you to reinstate/renegotiate the first mortgage

Explanation - A Chapter 13 bankruptcy can strip off a 2nd mortgage if the first mortgage equals or exceeds the value of the property. A chapter 13 bankruptcy may be used to strip away the 2nd mortgage allowing you to then negotiate with the first mortgage for a modification.

I would be glad to respond to any related follow-up questions that you may have.
Customer: replied 4 years ago.

You state that a Chapter 13 can strip off a 2nd mortgage if it equals or exceeds the value of the proberty. This is clearly not the case. I owe the 1st lender approx. $90K which would be abour $20K less that the market value of the property


Thank you for that additional information Frank. You can still use a chapter 13 to delay the foreclosure sale. Most individuals in this situation find it advantageous to file a Chapter 13 after the foreclosure sale date has been set. Since your foreclosure action has not yet been filed, you appear to have quite a bit of time before the foreclosure will be set for sale.
Customer: replied 4 years ago.

Can I file a Chapter 13 in Florida only five years afer filing a Chapter 7?


I neglected to mention in my first correspondence thath the property has a market value of 110K to 115K with a 90K 1st mortgage.

Can I file a Chapter 13 in Florida only five years afer filing a Chapter 7?

Yes. A person may file a chapter 13 at any time after receiving the discharge of the chapter 7 for purposes of invoking the automatic stay and setting up a payment plan.


I neglected to mention in my first correspondence thath the property has a market value of 110K to 115K with a 90K 1st mortgage.

This does not change my answer

Ellen and other Bankruptcy Law Specialists are ready to help you