Motion to have mortgage company change terms (2nd home)

[simon2020]

Hi All --- does anyone know the type of "Motion" an attorney needs to file in regards to asking the mortgage company permission to have the mortgage revised during my chapter 13 payment plan (60 months probably)?

Quick background - this is a second home that is part of my family for years, but now I am paying a small loan on it. I will definitely keep this mortgage payment outside of the plan. The 36 fixed rate stops on 4/1/09 and the new rate goes up on 5/1/09. So what I would like to do is to ask the mortgage company to possibly hold the fixed rate as it is today until I finish the plan.

I have read and heard about how it is up to my attorney to FILE A MOTION with the BK court because the Trustee/Judge will revise my mortgage, rather they have to give me and my attorney permission to have the bank agree to new terms.

[BlessedOne]

Hi All --- does anyone know the type of "Motion" an attorney needs to file in regards to asking the mortgage company permission to have the mortgage revised during my chapter 13 payment plan (60 months probably)?

Quick background - this is a second home that is part of my family for years, but now I am paying a small loan on it. I will definitely keep this mortgage payment outside of the plan. The 36 fixed rate stops on 4/1/09 and the new rate goes up on 5/1/09. So what I would like to do is to ask the mortgage company to possibly hold the fixed rate as it is today until I finish the plan.

I have read and heard about how it is up to my attorney to FILE A MOTION with the BK court because the Trustee/Judge will revise my mortgage, rather they have to give me and my attorney permission to have the bank agree to new terms.

At this point, your attorney doesn't need to file a motion. He can't force the mortgage company to do anything about your loan. You will need to work something out with the mortgage company regarding your payment. If the mortgage company agrees to change the terms of your loan, your attorney would need to file a motion to incur new debt. We just went through the exact situation a few months ago.

Our mortgage company contacted our attorney for permission to discuss changing our terms and we worked out an agreement with our mortgage company. The new terms will have to be in writing and it needs to be notorized. The Trustee will need to see the terms of the new loan it approve to motion to incur debt. Good luck.

[justbroke]

Hi All --- does anyone know the type of "Motion" an attorney needs to file in regards to asking the mortgage company permission to have the mortgage revised during my chapter 13 payment plan (60 months probably)?

Depends on what you want to do.

If you want to just change the interest rate, you just indicate a new interest rate in the Plan. If they object to the interest rate, then your lawyer will setup a hearing to determine if it's okay.

If you are trying to cramdown the loan to it's actual value... your lawer files a Motion to Determine Secured Status or Motion to Value Collateral (varies by District). Also, whether this is by motion or by Adversarial Proceeding is specific to your District.

So, since you mention that you only want to change the rate. Just have your attorney put 6% in the Plan (if that's lower than you're paying now)... or even 5%. More than likely, the lender will complain, you'll have a hearing, and nothing will stop the judge from allowing it.

Only your primary residence can't be modified by your Plan, according to the BK code today.

[justbroke]

At this point, your attorney doesn't need to file a motion. He can't force the mortgage company to do anything about your loan.

Take a look at the post again. The poster is asking about a 2nd home. Homes other than your primary residence... are fair game when it comes to bankruptcy imposed modifications!