Chapter 13, HELOC?

[jgold11]

i previously had a chap 7 following a divorce. i am now behind with my mortgage and want to file a chap 13 so i can get caught up. im in a better position now to afford my payments (no day-care). i have a heloc but havent paid it in over a year, they claim they cant contact me bc of my prior chap 7?? it was with countrywide and they sold it to a company in texas (realtime resolutions).

i owe 236,00 on my primary mortgage and 130,000 on the heloc. the home is work about 280,000ish.

will a chap 7 be beneficial to get caught up on my primary mortgage? will the heloc ever proceed to forclose if the home is not work enough?

[justbroke]

When did you receive your discharge in Chapter 7. It reads as though the HELOC, at least, was discharged in the Chapter 7.

If you're really that upside down, and can't strip the lien in a Chapter 13 (due to the recent Chapter 7)... I don't know why you're keeping that home.

[jgold11]

keeping the house is important to me for custody issues re my 6 yo daughter. will the heloc at some point forclose or will the chap 7 prevent that from occuring?

[StartingOver08]

The Ch 7 does not prevent the HELOC from foreclosing. Your ch 7 discharge did remove your personal responsibility/liability for the loan but the lien remains on the property. Your Ch7 probably delayed the foreclosure. The 2nd may not be in a hurry because of the value of your property. Has the first started their foreclosure yet?

I'm sorry for some reason I missed the first line of your post where you say you are behind in your mortgage..... As JB points out you can't strip your second in a Ch 13 because you were recently discharged from the Ch 7. Also, note that even if you had not filed your Ch 7 you would not be able to strip since your home is valued at $280k and your first is $236k. The market value of your home would have to be less than the value of your first mortgage in order to officially strip the second in a Ch 13.

[HHM]

See this blog post that explains the strategy and situation you are in

http://askmethner.com/?p=450

[jgold11]

if i file a chap 13 for the purpose of paying arregages on the first mortgage can the HELOC proceed with forclosure during the 3-5 year time period of my repayment plan or am i protected during the pending chap 13.

in a nutshell, i just want to buy time to keep the house for now.

[justbroke]

if i file a chap 13 for the purpose of paying arregages on the first mortgage can the HELOC proceed with forclosure during the 3-5 year time period of my repayment plan or am i protected during the pending chap 13.

Absolutely not protected. The 2nd can file for relief from the automatic stay. The court would easily grant this. Then they'd proceed with foreclosure.

I'm not an attorney and I'm only providing my personal opinion. You really need to think about your financial future. I don't understand how owning a home that you owe $90K more than it's worth, helps with a custody issue. I would say that the fact that you could end up in foreclosure, would be worse.

In the current housing market climate, it's unlikely the 2nd will foreclose, but some of them are. Just to get the debt off their books and to perhaps, get a little money from it as well, so it's not a total loss.

[jgold11]

forclosure/chap 13

if i am behind 14,000, forclosure has begun and i file a chap 13 what kind of payments should i expect to make in a chap 13 plan.

[justbroke]

if i am behind 14,000, forclosure has begun and i file a chap 13 what kind of payments should i expect to make in a chap 13 plan.

I can't really tell you how much you're be paying for the total Chapter 13 plan. You can figure out your "arrearage" payments by dividing $14,000 by 36 or 60 (so between about $233 to $390/month). You will be expected to provide a dividend to your unsecured creditors as well, and this is based on a complex "disposable monthly income" (DMI) formula.