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    #1

    What Would You Do

    Case Scenario:

    In Chapt 13
    Monthly payments affordable
    mortage is outside the plan
    and has been paid on time

    I forsee a government bailout and remods on my type of homes

    I see something coming between now and fall!

    If I stop paying my mortgage just keep money in escrow so mortgage
    company will consider me late so I can get in this new program what
    will happen to the Chapt 13 if i still make the plan payment but not the
    mortgage firm as they are outside the plan..

    Couple months of free rent if a new program is coming could help alot of people with some day to day bills!
    Started in Chapt 13 Switched to Chapt 7 Discharged 2009 Dec.........Filed New Chapt 13 in 2010 to deal with new surgery bill and stripped second mortgage! The story continues
    Tags: None
    #2
    you are playing a game of chicken with your house. Is that what you want to do. The new mortgage plan coming from the government is going to be predicated on a "stress test" for homeowners. You will have to meet a standard criteria. The bankers and government have been working on it all week. This means that the homeowners that pass this test will be able to modify. Those who don't, won't. The details of the "rescue" plan are to be unveiled Wednesday. And you supposedly don't have to be "behind" in your mortgage payments to qualify.

    I would tread cautiously. . .

    Comment

      #3
      I wouldn't take this risk if you really want to keep your house, and here's why.

      An interesting Statistic that no one is being told. In very early 2008, Congress passed the HOPE Act that would save homes from foreclosure. It was expected to help 800,000 homeowners.

      Can you guess how many people actually benefited from it to date?

      The problem with Government-based "rescue" packages -- and I hate calling them that because they tend to miss the mark completely -- is that they have so many conditions, that 90% of the people end up not even qualifying, let alone receiving the benefit.

      Caveat Emptor.

      The answer is 35. Yes, only 35 homeowners received modifications under the HOPE Act of 2008
      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
      Status: (Auto) Discharged and Closed! 5/10
      Visit My BKForum Blog: justbroke's Blog

      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

      Comment

        #4
        If you stop paying your mortgage payments during your Chapter 13, you risk dismissal by the Trustee. Before you make ANY financial moves on your own, always consult with your attorney first. Remember, you are not in control of your finances during your Chapter 13...the trustee is. Lots of people don't like to hear that and wonder why they get in trouble when they make decisions on their own.
        _________________________________________
        Filed 5 Year Chapter 13: April 2002
        Early Buy-Out: April 2006
        Discharge: August 2006
        "A credit card is a snake in your pocket"

        Comment

          #5
          Both excellent answers as to why not... Thats why I love this forum I read it everyday to keep my sanity during 13 and I am the type to always try and get best of all worlds so I am always entertaining ideas and appreciate coming here to get feedback........
          Started in Chapt 13 Switched to Chapt 7 Discharged 2009 Dec.........Filed New Chapt 13 in 2010 to deal with new surgery bill and stripped second mortgage! The story continues

          Comment

            #6
            Flamingo

            You menton risk of dismissal by trustee if I dont pay my mortgage?

            SCENARIO: the mortgage is outside the plan, the plan is current and will stay current..... What happens when a person chooses to pay the plan and gets 90 days late on the mortgage ?

            My guess is that the 13 gets reviewed somehow and the mortgage is added to the plan and arrears added to plan....

            I guess I dont really understand the legal benefit of having the mortgage outside the plan... I know it means the trustee doesnt get a percentage of that payment but what other perks or disdavantages to keeping the home outside the plan?

            I will stay on the sideline for now as this is all I had!
            Started in Chapt 13 Switched to Chapt 7 Discharged 2009 Dec.........Filed New Chapt 13 in 2010 to deal with new surgery bill and stripped second mortgage! The story continues

            Comment

              #7
              Flamingo

              You menton risk of dismissal by trustee if I dont pay my mortgage?

              SCENARIO: the mortgage is outside the plan, the plan is current and will stay current..... What happens when a person chooses to pay the plan and gets 90 days late on the mortgage ?

              My guess is that the 13 gets reviewed somehow and the mortgage is added to the plan and arrears added to plan....

              Your mortgage is part of your bankruptcy filing and your Plan even though you pay it outside of your Plan. It is listed among your creditors. If you don't pay that mortgage payment, your trustee will be informed and it will all come crashing down. Talk to your attorney. Don't dance around the situation and try to find a way out.
              _________________________________________
              Filed 5 Year Chapter 13: April 2002
              Early Buy-Out: April 2006
              Discharge: August 2006
              "A credit card is a snake in your pocket"

              Comment

                #8
                If you missed mortgage payments now, just "adding them" to your plan would not be possible as they would be considered "post petition debt". To do it you would have to modify your entire plan and redo everything (if that is possible)

                Comment

                  #9
                  I wouldnt gamble on some proposed plan.

                  Comment

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