Helping Homeowners Save Their Homes in Bankruptcy Act of 2009, House Version

[worried]

I'm not sure what you mean. Am I still considered in foreclosure even if the chapter 13 stopped it which was just last April. And do you mean the bill will help if you are in a chapter 13 but need to be current outside the plan. The chapter 13 payments are mostly mortgage arrears and am current on chapter 13 payments.

[spearmint]

It's really too early to speculate. But I think the Bill requires that the house be IN FORECLOSURE "before" the case is filed.

Do you mean in foreclosure "before the BK13 case" is filed? Not sure what is meant by "the case".

[HHM]

Do you mean in foreclosure "before the BK13 case" is filed? Not sure what is meant by "the case".

The case...meaning the chapter 13.

If, BEFORE you filed your chapter 13, your house was in foreclosure, and based on the retroactive language of the bill, you would be able to modify the first.

[worried]

I'm not getting it why would I have to be current with my mortgage. Is that the only way we will get our loans modified?

[HHM]

Ok, you are confused, and I think others as well because you are in an active chapter 13.

So let's back up...lets forget the mortgage mod bill exists for a minute.

1. In a chapter 13, you need to stay current on your mortgage during your chapter 13 if you want to keep the house. If you fall behind, you have defaulted and the mortgage company can lift the automatic stay and foreclose. As of TODAY (2/27/09), there is no way to modify the 1st mortgage.

2. Ok, now lets talk about the BK modification bill. As it is currently written, a debtors home must have been in active foreclosure when the debtor FILED their chapter 13 BK.

[spearmint]

So what happens to those of us whose homes are in foreclosure and file Chapter 13 BEFORE the housing bill and BK modification bill is passed. Will it be too late for us to get our loans modified?

[HHM]

So what happens to those of us whose homes are in foreclosure and file Chapter 13 BEFORE the housing bill and BK modification bill is passed. Will it be too late for us to get our loans modified?

No offense, but for f's sake, I have said a few times in this thread...the BILL, as written as of today is RETROACTIVE to all chapter 13 cases that are OPEN at the time the bill is passed.

So long as your home was IN FORECLOSURE when your chapter 13 was FILED, you will be covered.

[worried]

My home was in foreclosure because i made it right up until sheriffs sale. I assume we are all in foreclosure otherwise we wouldn't be having the sale right? And also when you say open my court case status says closed. I guess we'll know soon enough next week. I heard march 4 or 5th.

[spearmint]

You made your payments right up to the sheriff's sale? Has the sale passed or is it still to come? I am surprised they accepted your payment.

[worried]

no i was 20,000 behind and i was in foreclosure at the time (April 08) but I'm not in foreclosure now but i consider myself still behind because of the arrearages in the plan. Now i want to refinance with the new bill but don't think i'll qualify because i don't think i'm actually in foreclosure because they haven't threatened to take my house yet. But on the other hand I have a second mortgage that has asked for a relief from stay because I missed about 4 of their payments. I'll have to wait and see i guess. I suppose the attorneys will make a bundle on this. Mine costs 275/hr.

[HHM]

Worried...this thread is getting a little off topic since it is now addressing your specific scenario.
You are confusing two things.

The NON-Bankruptcy foreclosure modifications provisions that were passed as part of the stimulus...those programs DO NOT require you to be in foreclosure, but it will be interesting to see if someone in an active chapter 13 can use them...probably not. March 4th is when we are supposed to see the rules for these modification programs.

What THIS thread is about is the "Proposed Chapter 13 Modification" bill that will allow a chapter 13 debtor to modify their first mortgage. This bill, in its current form, would require that the debtors residence be in Active Foreclosure at the time the case was filed. However, because the bill appears to be retroactive, debtors who are presently in chapter 13 (like yourself), "might" qualify assuming their home was in Active Foreclosure AT THE TIME THE CASE WAS FILED. This bill HAS NOT BEEN PASSED as of 2/28/09

Unforetunately, since you fell behind on your mortgage during a chapter 13, you are screwed. Sorry to say, I doubt anyone will touch your case with a modification...after all, if you can resolve your financial issues in a chapter 13, frankly, your hosed as it relates to your home.

[worried]

This is why I'll be catching up and only owe about 1300.00. I'll get it from family for now. Sorry HHM for getting off topic. I shouldn't get my hopes up. Thanks again for all your help....

[spearmint]

No offense, but for f's sake, I have said a few times in this thread...the BILL, as written as of today is RETROACTIVE to all chapter 13 cases that are OPEN at the time the bill is passed.

So long as your home was IN FORECLOSURE when your chapter 13 was FILED, you will be covered.

Where can I find the aid that was stated in the stimulus bill? (I thought the BK issue and the "other" aid were all in the same bill. I think that's why I am confused.)

[elster]

Does this new legislation permit one to surrender their house in full satisfaction of their mortgage debt without having to pay all or part of a deficiency?

[StartingOver08]

Does this new legislation permit one to surrender their house in full satisfaction of their mortgage debt without having to pay all or part of a deficiency?

If you are surrendering your house in BK then you ALREADY can do so without paying a deficiency. It is already part of the BK code. This new legislation is to allow the BK court to modify the first as HHM has posted.