We were the sole support for my mother for 15 years to the tune of about 30K per year we would send her way. Always living close to the edge. I owned a professional business for this time period. Business was slow about five years ago and we had alot of CC debt and 1st and 2nd mortgage. We were able to consolidate all of this into a new first mortgage at that time. The only way the bank would do it is if my mother pledged her house as collateral and cosigned this loan. This cosigning gave the bank a second position on my mother's house, she already had a first mortgage. My mother did not recieve any proceeds from this loan.
Fast forward to Spring of '09. All payments were made on time up until this point. My business went in the crapper and payments fell behind. After doing all the CPR on the business that was possible I decided it was time to close it. I was fortunate enough to find a nice paying job in my field. We had to move and file for CH 13.
I had a professional building with a loan balance of Apprx 90k and house with a balance of appx. $250,000 (same bank for both). House is close to even or slightly under water. We were unable to sell either property before the move and filing 13. What we did was turn over both properties to the bank but they are still going through all of the steps of forclosure. They have already forclosed on the office building but they are holding out on the house because they want to go after my mother's property as well. My attorneys believe that what the bank should recover from the sale of our house and office building should satisfy both notes. We have filed a motion to avoid lien on my mother's property. The confirmation hearing is later this month( FEB) and bank has filed an objection.
I guess my question is : Are we taking the right steps to avoid this lien? Is there anything else that can be done?
Everything else has gone pretty well except for this. This has us and my mother extremely worried. If she loses her house she would not be able to afford to live anywhere else and would most likely have to live with us which would drive up our expenses and make our chapter 13 unaffordable. Please help!!
Fast forward to Spring of '09. All payments were made on time up until this point. My business went in the crapper and payments fell behind. After doing all the CPR on the business that was possible I decided it was time to close it. I was fortunate enough to find a nice paying job in my field. We had to move and file for CH 13.
I had a professional building with a loan balance of Apprx 90k and house with a balance of appx. $250,000 (same bank for both). House is close to even or slightly under water. We were unable to sell either property before the move and filing 13. What we did was turn over both properties to the bank but they are still going through all of the steps of forclosure. They have already forclosed on the office building but they are holding out on the house because they want to go after my mother's property as well. My attorneys believe that what the bank should recover from the sale of our house and office building should satisfy both notes. We have filed a motion to avoid lien on my mother's property. The confirmation hearing is later this month( FEB) and bank has filed an objection.
I guess my question is : Are we taking the right steps to avoid this lien? Is there anything else that can be done?
Everything else has gone pretty well except for this. This has us and my mother extremely worried. If she loses her house she would not be able to afford to live anywhere else and would most likely have to live with us which would drive up our expenses and make our chapter 13 unaffordable. Please help!!
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