Is it possible to get the first mortage to put their claim back after loan mod?

[espo1357]

In my original 13, there was a 100 percent payback to the first mortage.

AFTER I filed, however, the first mortgage company put the arrears back into the loan, so...

now all of my 13 is going to the unsecured, its about a 20 percent payback. Not bad.

Of course, I would prefer all of the 13 to go to the secured because I am underwater and that money could go the principal.

I called the first, and they said that it was unlikely that they could do anything. Called the BK attorney representing, and they are going to look into it.

Just wondering if anyone has had success with this, or if this is even possible. That is, having a claim that was taken away put back in, especially in the case of a secured creditor with no equity on the home.

Thanks, you all are a great resource and I appreciate your thoughtful responses!

[newbie2]

In my original 13, there was a 100 percent payback to the first mortage.

AFTER I filed, however, the first mortgage company put the arrears back into the loan, so...

now all of my 13 is going to the unsecured, its about a 20 percent payback. Not bad.

Of course, I would prefer all of the 13 to go to the secured because I am underwater and that money could go the principal.

I called the first, and they said that it was unlikely that they could do anything. Called the BK attorney representing, and they are going to look into it.

Just wondering if anyone has had success with this, or if this is even possible. That is, having a claim that was taken away put back in, especially in the case of a secured creditor with no equity on the home.

Thanks, you all are a great resource and I appreciate your thoughtful responses!

Probably doubtful that the trustee would now take money away from unsecured creditors to pay more to the mortgage company, especially since there are no arrears left. (Remember, BK trustees are there to try and get as much money for the unsecured creditors as they can.)

[AngelinaCatHub]

What the heck, give it a try. If you don't try, there is only one answer. 'Hub

[catleg]

The problem is, in a ch13 your obligation to secured creditors is simply, the amount contractually due over the next 60 months. Hard to get around that.

If the amount is significant it would be worth thinking about filing a personal chapter 11 case. Sure the legal costs are high, but will mostly come out of the unsecured creditors hide, and you are required to devote all disposable income to "the plan" and not necessarily "unsecured creditors", therefore your plan can favor paying off the mortgage and to hell with the unsecured creditors.

I wish I had gone down this path myself, but I let things drag out too long and needed closure for peace at home.

[espo1357]

The problem is, in a ch13 your obligation to secured creditors is simply, the amount contractually due over the next 60 months. Hard to get around that.

If the amount is significant it would be worth thinking about filing a personal chapter 11 case. Sure the legal costs are high, but will mostly come out of the unsecured creditors hide, and you are required to devote all disposable income to "the plan" and not necessarily "unsecured creditors", therefore your plan can favor paying off the mortgage and to hell with the unsecured creditors.

I wish I had gone down this path myself, but I let things drag out too long and needed closure for peace at home.

Ya, I am with you on the peace at home thing. For me, it was peace of mind, after having some chest pains after my third cc lawsuit.

I filed the 13 when behind on the mortgage (I fell behind because of the stupid mortgage company re-doing my loan modification 3 times), and then the first mortgage gives me the modification after I file, and those arrears went back into the loan.

It might not matter, because I am likely going back to school soon, and will most likely just file the 7 and walk.

Peace of mind is worth the price.