Falling behind on mortgage in active Ch 13

[Scottowl]

Things continue to become increasingly not so bright for me. It is mostly my own doing, I suppose.

When I began my case about 16 months ago, my mortgage company reported I was behind one month.
I was not greatly concerned, figuring it to be a clerical error. I missed another last spring when I became ill.
Then last month, ill again, I only made half the January payment. Nothing has been sent in for February.

I made the mistake of calling the lender to get an exact accounting of just how far in the hole I am, to which they replied that I should contact my attorney.
I did not have to do that, as he contacted me first, letting me know the lender filed for relief from the stay. My attorney said foreclosure is imminent, and would begin in 14 days. That was about a week ago.

I asked what recourse I may have, and was informed the lender will normally allow making up the past due amount over 6 months, if I stay current on payment. The dollar amount he suggested will be tough to tack onto my budget. I suppose there is also no guarantee I will even be offered such a plan.

So, here I find myself aging rapidly, with health problems to show for it. In many ways I am worse off than I was before I started this adventure. If I can somehow navigate my way through this 13 case I will be 3 months shy of full retirement age when it ends.

I asked about using my retirement account, either a loan or withdrawal, and got zero response from lawyer. I feel like doing it, and taking my chance the trustee does not move to close the case. Worst case, I would still have this depressingly crummy shack to call home. My account is at such a ridiculously low level that the 3-5k$$ it would take to catch up the mortgage would not help my 'golden years' anyway.

So many health problems I must address while I still have health insurance through my employer. I have bone spurs in both feet that are in constant pain, and a shoulder that is only about 50% functional. There is the potential liver damage, and diabetes that I cannot get under control. I was recommended for a colonoscopy to account for anemia about 2 weeks ago. Oh yes, let's not forget about dental deterioration I have been putting off for decades. These will be expenses I cannot possibly budget for on my plan.

I do not have a warm fuzzy feeling at present.

[Barbisi]

I'm so sorry that your health and financial situation is only worsening in this BK13, Scottowl. You deserve better than this miserable existence.
This is exactly what I foresee happening to us (or me, as the survivor if my husband dies first) if we stay here much beyond our first Bk13 discharge in 2022. True, we never gambled at all or drank to excess,etc, but this high COL state with its brutal climate (frigid arid steppe-like winters and blistering sun-soaked summers near 100F with nearly six months of constant wildfires) does not portend a bright future for us.
If you are already in foreclosure and your house is just a shabby hovel that you're likely going to be unable to fix in the future, maybe letting it go would be best in the long term. I recall you posting that you are alone and have no immediate family (I totally empathize because apart from my husband I have only very ,very distant cousins with whom I have zero contact), but could you move to a small apartment, file to convert to a 7 on the grounds of your worsening health, get the surgeries and dental care you need and keep your meager 401K, instead of wasting it on your rapidly deteriorating house and somehow continue to work just enough to get to the age to collect social security and medicare? Hopefully you received the last stimulus ($600) and will receive the $1400 to come (if that goes forward and is distributed according to plan) - that could help you move.
I feel such sympathy for how things how unfolded for you - so many gamblers on these forums have been able to successfully discharge their debts with out punitive judgements, why not you?
Prayers for some long over due luck!

[flashoflight]

I'm not a lawyer, but maybe the new 1328(i) section from the December COVID relief bill may be in play for an expedited discharge or even save the home. The verbiage in this section is vague but I would 100% have your lawyer take advantage of it and timely oppose the motion for relief from stay. Your lawyer and you have to take advantage of this. The court and the trustee won't do it for you.

[justbroke]

I hope that you are doing a little better today. As suggested, maybe you can look at a hardship discharge, but that won't fix the issue with the home. This pandemic is for the birds, or pigs, or whatever creature from which it originated.

I think that you should be able to use the 401(k) based on "some" of the language in the CARES Act, but I also believe that it restricted the emergency withdrawals to a certain deadline.

[Scottowl]

Barbsi, I ended up in Ch 13 because of the means test. Most of my life I did not make much $. I plodded along at about 40k per year for a long time. I have worked for the same company for going on 40 years, and finally advanced to a good position about 8 years ago, close to double that or more, depending on OT. Even at that, I was barely over limit on the means test.

I got kicked around a little on the stimulus last year, being single and a 'high wage earner' (Ha ha). However, when I filed this year my AGI was barely over the 75k threshold, so I was able to claim it as a tax credit. The way it played out for me, it goes to the trustee as a tax refund. We have state income tax here in Oregon, so the trustee scores on me again. IF there is another payout, and IF they use the 2020 AGI, I just might benefit this time around.

It would be in my best interest to stay here, at least while I am working and tied to this area. Rent is stupid crazy for the income level around here. You can't even find a room in someone's house for under 600$. Apartments that you would want to live in are at least 1k/month. I do need to take advantage of the fact I have decent health insurance. The paradox is that I also have a restricted income with no room for health care payments. So I do have insurance, but am too broke to take advantage!

Flash, excellent tip on the COVID bill. I had no idea it was out there. I still don't know what it is (lol), but will be researching it. I communicated to my attorney the circumstance of my refund/COVID credit, asking if I could keep it, as the intent of that bill was not to enrich the trustee. He had me forward my return, and he will look in to it before forwarding to the trustee. I read between the lines him telling me to just shut up and pay.

I will be seeking his opinion on how it pertains to my case.

JB, this pandemic... I had a good solid lid on the gambling, thanks to my councilor, and really making some progress. I am the introverted type, and used the gambling as a way to be part of something was the theory. The social distancing thing did not allow her to see clients in the office. I could have used the phone, but did not. Maybe I should have.

Frigging gambling is a mental illness from where I stand. I can't make excuses for my past lifestyle errors, but I do wish they would turn loose of me.


I just don't know about things lately. I can barely walk some days. I had to lift something heavy the other day at work, and my shoulder just about gave out. It still is sore, days later. I had to get the 'kids' to give me a hand.
I used to be strong, and did not need help. Aging is taking its toll, physically and mentally.
I am not out dancing in the streets, but also not leaning out a window ledge somewhere. Maybe Welbutrin is keeping me alive right now?