Lien strip and some other questions

[frankies_mom]

We have decided we may do a Ch 13 to strip the lien on our 2nd mortgage. Our 1st mortgage is more than the home is worth so we are OK with that. Have a consult with the attorney tomorrow who did our Ch 7. I have a few questions if anyone can answer.

1. About how much is a Ch 13? Can you roll some/most of the fees into the plan?

2. Would you try to settle the 2nd first and then go with a Ch 13 if you don't get anywhere? (I guess we're thinking if we can get them to settle we can save ourselves the trouble of a 13 but don't know how likely this is).

3. How are payments determined in a Ch 13? I am assuming we'd be paying our 1st mortgage in there? Maybe our condo dues? I am not sure how this works.

Thanks!

[liz417]

We have decided we may do a Ch 13 to strip the lien on our 2nd mortgage. Our 1st mortgage is more than the home is worth so we are OK with that. Have a consult with the attorney tomorrow who did our Ch 7. I have a few questions if anyone can answer.

1. About how much is a Ch 13? Can you roll some/most of the fees into the plan? Depends on your attorney. Our 1st atttorney required full payment before he started our ch 13 case.

2. Would you try to settle the 2nd first and then go with a Ch 13 if you don't get anywhere? (I guess we're thinking if we can get them to settle we can save ourselves the trouble of a 13 but don't know how likely this is). Do you have any other debt besides the 2nd on the house?

3. How are payments determined in a Ch 13? I am assuming we'd be paying our 1st mortgage in there? Maybe our condo dues? I am not sure how this works. Go to www.legalconsumer.com and plug your numbers in, this should give you your DMI (disposable monthly income)

Thanks!

If the 2nd on the house is the only debt you have, you could try and talk to them, but I've read that it can be difficult and a LONG process, but I guess that beats being stuck in a ch 13 for 5 years. How much upside down are you on the house and is it going to be affordable after stripping the 2nd? Did you reaffirm the loan(s) from your 1st bankruptcy?

[frankies_mom]

Thanks liz417!

The 2nd is the only debt we have on the house. We did not reaffirm either 1st or 2nd and we are current on first. Our 1st is very manageable. We have a 5.625% fixed rate for 30 years and our mortgage is cheaper than most rents around here. We are about 5-10k upside down on the 1st. When times were good we were up about 30k on our 1st.

I will go into that wesbsite and plug in our numbers. Thanks!

[frankies_mom]

oh, and the 2nd is the only debt we have... period.