CH 13 Questions

[knightsbranch]

I'm want to file a ch13 and save my house.
I have been paying the second ( I am up to date with that ) and I am delinquent on the first by 5 mnths. Would it be better if I pay the first, I would still be delinquent, and stop paying the second altogether. The house value is borderline dropping into the first so there is a possibility of a lien strip. Also once I am in bankruptcy does that stop any foreclosure proceeding. I have received a ' Letter of Intent to Accelerate' from Countrywide / BofA but no NOD as yet. I live in California.
Thanks anyone.

[DeadManCrawling]

I would not pay anything.

But I WOULD save the money. Just not in a bank account.

Search this site for cross-collateral. (spelling?) Or set-off.

If you are considering a 13, your payments will be made up for the First. The 2nd will likely receive nothing. No point in paying them now. They stand in line behind your first.

If your plan is confirmed, you will have the chance to catch up the first in the plan, over either 3 or 5 years.

If your plan is not confirmed or you are convertd to a 7 (unlikely), you will need the money.

As long as you file before the foreclosure occurs, you will be able to work this out if you intend to keep the home.

You didn't post enough detail to really let us know what i s going on, but there are some very sound reasons to let the home go in certain circumstances.


BK filing WILL stop the foreclosure process, at least for a while, which may help you get a mod, and at the least will help you save money to move.

Best wishes,

-dmc

[h0usekeeper]

Agree with Deadmancrawling - do not pay. Second will be stripped and you can cram down the first.

[optimistic1]

and you can cram down the first.

Since when?