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My mortgage company is threatening foreclosure on my house.

Customer Question
I am recently divorced and...
My mortgage company is threatening foreclosure on my house. I am recently divorced and my ex will not sign the loan modification with the first because she no longer wants to be on the loan with me. There is a first and second on the loan and the second will not do a quick claim unless the loan is satisfied (and of course the loan is in default).

My question is, is there a way to delay the foreclosure with a bankruptcy claim? Or should I try a Short sale? what would delay me losing the house the longest?

Thank you.
Submitted: 6 years ago.Category: Bankruptcy Law
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4/6/2011
Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36,715
Experience: Bankruptcy Lawyer. Experienced.
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Hello,

So sorry to hear of your difficult situation.

I am a lawyer with 25 years experience. While I am not your lawyer and do not represent you, I will endeavor to provide you with legal information through this open and nonconfidential forum.

A Chapter 13 bankruptcy would delay/prevent a foreclosure


A Chapter 13 bankruptcy would immediately stop the foreclosure action. It could permit you to set up a plan to reinstate your mortgage arrearages. In other words, it could allow you to pay the arrearage over a 5 year period.

The Chapter 13 bankruptcy may also be used to strip away the 2nd mortgage if the first mortgage equals or exceeds the value of the property.

It would be best to retain an attorney. If you cannot, you will want to purchase the forms on line and file them yourself prior to the sale. After you file the petition, you will need to notify the plaintiff.

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Customer reply replied 6 years ago
Thank you,

I know there are a couple differnt forms of Bankruptcy, my hope was to delay the process as long as I could. If I file chapter 13, can I move that to 7 and then witdrawal the claim before proceeding? That way have another year to get things together. If I did that is there a cost to filing if I did it on my own? How does that work? And if I did go through Bankrupcy, would I have to give up my Vehical? I also have 2 credit cards I would like to keep since all my accounts have been canceled and I would not qualify for a new card with anyone.
Bankruptcy Lawyer: Ellen, Attorney replied 6 years ago
I am going to open your question to the other experts
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Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified

Hi JACustomer,

What is the current market value of your vehicle (KBB trade-in value), and what is the balance - if any - on the car loan?

For how long were you hoping to delay the foreclosure?

Have you already received the Notice of Default?

 

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Customer reply replied 6 years ago
Auto worth about 25,000 the loan is about 21,000

Two credit cards with a zero balance, but I would like to keep them.

Other than the house and the truck I have no other assetts, and have about $50,000 in other delinquent unsecured debt.
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

I'm not sure if these questions went through:

For how long did you want to delay the foreclosure?

Have you already received a Notice of Default?

Has the either mortgage lender already filed a foreclosure action in court?

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Customer reply replied 6 years ago
As long as possible,. 6-8 months..

I have not received the notice, but the lender says the house is in preforeclosure but there is no sale date set as of yet.

I have not received any Foreclosure notice,

I don't know if they have filed anything as of yet, I have not made a payment since 07-2009
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

The foreclosure process - from Notice of Default to sale of the house - takes at least 4 months, and usually longer.

If you are not planning on keeping the house, if your main goal is to delay the foreclosure, you do not have to file a Chapter 13. You can file a Chapter 7, which is far less complicated than a Chapter 13, and will give you the same automatic stay protection as a Chapter 13.

You can wait - as many debtors do - until 3 weeks or less (many wait until that day, but this is not recommended) before the house is scheduled to be sold at auction - to file a Bankruptcy. This will stop - at least temporarily - the foreclosure action, as the lender will then have to file a motion in the Bankruptcy court to ask that the stay be lifted. This takes at least 3 months.

If you file a Bankruptcy - whether or not you then have it voluntarily dismissed - you can keep your car, since it has only $4,000 equity.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

 

 

 

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Customer reply replied 6 years ago
How will I know what the sale date is? Are they required to send me something in the mail?

If I do file Chapter 7 myself, what is the cost to file? and after I file if I decide to do a short sale can I withdrawal my claim for Bankruptcy?Not sure what the proceedure is , when you file is there another step that has to occur to complete it , and is there a penalty if I decide not to?

Sorry for all the questions, but I think that is all of them

Thanks again.
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

You are supposed to receive notice of the sale. However, as you cannot depend on this, you can keep checking with the court at the clerk where the foreclosure proceeding is.

If you file a Chapter 7 yourself, it will cost you a $299 filing fee.

Yes - since you have nonsubstantial assets, you can voluntarily dismiss your Bankruptcy case at any time.

To file a Bankruptcy, you have to fill out a 60-page application, but filling out the application is not as ominous as it may seem, because there are about 30 pages that remain blank, or need only one check mark. You should be able to get the application from your local Bankruptcy court.

There is no penalty for dismissing your case.

However, you will not be able to keep your credit cards, even if you dismiss the case. Credit card companies cancel all credit cards upon a Bankruptcy filing, even if the cards are not in default, and even if they have no balance. This has nothing to do with the Bankruptcy court - it is the policy of the credit card companies.

 

 

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Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

I added this, but do not know if it went through:

Filling out the 60-page application is not as ominous as it may seem, because there are about 30 pages that remain blank, or need only one check mark.

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