How do we deal with the part of where the house is underwater?
Could the underwater amount be included in the Chapter 13, to wipe it away
How do we deal with the underwater amount?
So what are our options to wipe away this debt?
hello , are you still on line?
Do you think a bank would agree to do a short sale with 70,000 in shortage.
In the beginning you stated a loan modication, is to change the interest rates, extend the payment plan or there was another issue. I am not confused bc you are saying to do a loan modification, and in the beginning you said the loan modification is not used to deal with an underwater property.
I think we are locked into this loan modification, is that possible? Can we go to the bank now and ask for a different type of loan, or do we have to stay the course with the loan modification, and we can not change it
Ok, I will come back to this issue.
We had a 2nd mortgage on the home, which is deemed predatory, the interest rates were like 17% and proper evaluation of us the client, did not happen, so we got another loan for 118,000.
So you are saying it is a rare case to be approved for another loan modification. The reason this happened with borrowing against the house, is we were involved in a medical treatment, that was totally fraudulent. I have to go to the state attorney's office to do the investigation, that fraud did indeed happen. That is why we borrowed against the house so much. It is a rare sitution, however do you think the bank would then
What about the 2nd loan, should this loan have been wiped out with the bankruptcy.
Our bankruptcy attorney, did not do this? Now he is saying he has to file an amendment to the original plan. And it is going to cost alot of money to do it.
Our bankruptcy lawyer is telling us to go to the Elder Lawyer, and ask alot of questions, like if my husband dies, will I be able to afford to live in the house? And before he will do a lien strip, I have to let him know what the elder lawyer says about income if my husband were to die?
So to reiterate what you are saying, if we were to petition the courts to include the 2nd mortgage, it would change the plan repayment schedule and is there a formula the courts say to use to see what discretionary income we have left over and could we afford
Is this what you meant, if we could afford the increase in making plan payments
My husband is on permanent disability, and do you think this would help us to ask for a special consideration to the bank to remodify the loan.
We are not making the payments on the 2nd mortgage.
We do have a significant amount of income, 72,000 per year on disability. However about 80% of our income is to the mortgage company, the repayment of the chapter 13, and the cost of our cobra benefit
I am in a quandry, as i feel the lien strip should of been included in the original plan.
should we pay the lawyer additional fees to file this with the courts?
he absolutely reluctant on filing the lien strip.
Now our 1st mortgage company has filed with the bankruptcy courts a petition, to charge the fees on the original loan modification for appraisal fees, attorney fees,
I do not understand how the mortgage company can now come back to us and ask for the bankruptcy courts to amend the plan to include these fees.
we also got notification from a collection lawyers office, regarding us not making the 2nd mortgage payment, and the second mortgage company is asking for 40,000.00. The loan modification was approved in August 2012. Our plan was approved in February of this year
so would it be best to file the amended plan now, and our lawyer is just wanting to put it off? this does not make sense, to me.
so is there a time frame in which we have to remodify the plan, so we can stop the mortgage lender coming after us?
Yes, the 2nd mortgage company is using a collection agency under a law firm.......so how much time do we have from the date we received this correspondence?
so would the 2nd mortgage company have to seek approval/petition from the bankruptcy to proceed with action against us and then that has to be approved by the federal bankruptcy
So on the underwater part of the loan, you are saying to ask the bank to reconsider us for a new loan modification and what would be my best arguement for us.
in your response, the last sentence confuses me, so we tell the bank we will let the house go into foreclosure, and the foreclosure will likely produce less than what you're willing to pay. I am not sure I am following this, an example of what I understand is this............this is an example....... the foreclosure of the house would go for 265.00, and the loan amount is 345,000........so the banks stand to lose the difference between 345,000(loan amount)- 265,000(price to sell it)= -120,00
Would the bank lose more in a short sale or a foreclosure?
what is in our best interest? to use this argument of foreclosure to the loan modification department of the lender.....
The cheapest way for the bank is to do a new loan modification with a principle loan reduction. there is a new hamp 2 program that considers a principle loan reduction.............so by this new Hamp2 program, would the banks be required to do another loan modification? do you know anything about this Hamp 2 program, and if not, who would I contact to get more information on the Hamp 2 program
what about the fees our 1st mortgage company is trying to collect on a loan modification that was approved last year.
with the loan modification, we received no documents that said we need to pay for fees, so how can the lender for the 1st loan modification, now ask us for these fees?
so our lawyer has to file an amended plan for the1.) fees charged by the 1st mortgage company, and 2.)also the 2nd mortgage.
Also, my husband has progressive MS, and his cognitive abilities have been greatly diminished. Before we filed for the bankruptcy in January and plan approved in February, he took out a pay day loan like the week before the bankruptcy was filed. and the payday loan people took money out of our checking account after we filed for bankruptcy. they have sent us to a collection agency and part of the collection agency is trying to say they are going to put a warrant out for my husband's arrest, if we do not pay back the loan amount.
We did not get a copy of the loan modification papers, if we did, I have misplaced them. So do I call the bank and ask for reconcilation paper of the loan modification.
Do you know anything about the New Hamp 2 program?
do u know who I can call to get more information about it?
It seems almost illegal for a bank to not write off the amount the house is underwater? It would appear there was something wrong with the 1st mortgage, allowing us the consumer to take out loans that would put the house under water?
should I talk to a real estate attorny, about this amount the house is underwater, and see knowledge he has about getting this house from underwater
I am unemployed and it says something about the Hamp tier 2 unemployment loan. Maybe this would be another option to increase our chances of being requalified for a loan modification
We are having problems making the 1st Mortgage payment, we are now 1 month behind. would this help plead our case or make it a stronger case for loan modification
It says something about Principal Mortgage reduction in this link you sent to me.
With our bankruptcy, it will be dismissed in 3 years. In the meantime is there something we can do to improve our credit worthness?
Thanks Kirk, I appreciate the links you sent me and how can I pull up what you have said to me? do I type in the web address, and then will this chat come up with you and me.
We have, we send the payment in the mail, and we are very faithful to that issue.
I thought at the end of three years, we had no obiligation to continue to pay them anything, it was suppose to be included in the plan.
when I apply for a job, should i bring up the bankruptcy?
Do you think that the Hamp tier 2 was designed for people who did struggle with the Hamp Tier 1 program?
Is the goverment by doing or introducing Hamp tier 2 program is designed to fix some of the problems Hamp Tier 1?
Because of the Hamp Tier 2, are lenders required to reconsider people bc of this new program? by the goverment?
Ok, thank you again for your services you were very helpful. I will give you an excellent for your servies
I did have another question and now let me think of it. Our loan modification was done in august of last year, and our bankruptcy was filed in Febuary this year, how can they come after us for these fees?
I did pay the 30.00 when I initially talked with you, will I be billed again for talking to you again?
This was a pre debt before the bankruptcy was filed. However, we never received any of these so called fees when the loan modification was processed and accepted. So I am not sure if we can say this was a pre Position Debt, as we never received notice of these fees. So , it is as if we filed the bankruptcy and now the 1st lender is asking us for these fees. Do you think they are asking for these fees as we are now 1.5 months behind in our mortgage and this would be part of the foreclosure process if we were to foreclose on the property. We do want to stay in the house, and we do have a friend who is helping us out. so I think it will stay a foreclosure from happening.
What is the document called for the loan modification, that would outline these fees?
I do understand, under what circumstance, would we have to pay these fees, ? If these fees did exist, would they have been wrapped up in the loan amount by the lender, which was an extension of payments for the loan.
I am not sure where or how we could be responsible for paying these fees?
Thanks Kirk, that makes better sense now, I do appreciate you explaining this to me, I was so frustrated trying to understand why and what happened to make this request to generate. Do you think potentially it got generated bc we were behind on the note, like 2 months, and then that is what kicked this request out?
I am soooo sooo thankful. I had called my bankruptcy attorney about that notice and no answer in regard to what it is, or what probably happened. Nothing.
I went to this lawyers office and asked for the petition and copy of the bankruptcy and only then did he bother to answer my question. It worries me so when I do not know what is happening and why it happens.
You have given me some peace just to that question alone.
Our 2nd mortgage which is still out there, many people have told us it is a predatory loan, the interest rate charged was 17%, and well outside of the acceptable levels to be able to afford that loan. Someone said, we could sue the original lender for the interest rates charged. For 6 years, we paid that loan $1900 and our primary loan which was around $3,000 per month. Our house payment was $5,000 per month. There is a story of why we had a $5,000 loans, I will not go there right now. I am just trying to unpack the mess we have before us.
Can we sue the lender of the 2nd mortgage for being predatory.
Also, I have a sister in law that they lost their house to foreclosure and now the federal goverment, is sending them a refund for $25,000
This second mortgage was not included in the bankruptcy, so is it something we would even have time to consider, before we do the lien strip. Right now we have correspondence from a umm real time solutions, which is a collection agency asking for the amount for that loan from February forward.to today?
Is this something that should of been discussed with the bankruptcy lawyer before he filed the bankruptcy?
We made the payment of 1400-1500 per month for 6 years, had no idea it could of been a predatory loan and what that meant. It was a friend who helped us with the loan modification, told us this 2nd loan was predatory. Another person in the banking industry said the same thing. If we pursue it, it might have to go through the consumer courts.
Do you think it would go through the consumer courts?
We made almost 100,000 payments on this loan.
There is alot of baggage to why we needed this loan, and so if I can get rid of it, or have money returned, it would help so much.
Now I am talking with the bankruptcy lawyer about the 2nd lien and he said hemmed and said it would be alot of paper work and it could take up to 6 months to complete.
Since you're in bankruptcy, the matter would likely have to go through bankruptcy court via adversary proceeding unless the court allowed the case to be pursued in another venue.
It sounds like your bankruptcy lawyer was maybe paid a flat fee to take your case and doesn't want to do anything extra! This is not a difficult procedure (usually) and generally doesn't take 6 months. You may want to discuss this issue with him/
We paid our bankruptcy attorney 700.00, and then the bankruptcy courts paid him i think like 2500 on top of that money. So maybe this is why he is reluctant to do more. What do you think?
I obviously can't say for sure, but many bankruptcy attorneys want to run a "rubber stamp" process where the content is basically the same and all that changes are the names of the debtors - - this allows them to do the work for less money, which is a saving that is ultimately passed to the client. Thus, the resistance you're getting may be because this additional work is going to cut into his profit margin.
However, the client's well-being is the main concern and your case should be handled with detailed attention.
Thank you so much Kirk for your help, going through the bankruptcy was a very bittersweet story. Very sad reason. Unfortunately, my husband was diagnosed with a aggressive form of MS, three years ago. He received totally inappropriate care for 2 years, and we were not able to address the original reason why we had to take the bankruptcy. Our focus was getting him to the right medical care..........we are on that road now, with more issues to resolve, still with his medical care.
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