2nd lien stripping...

[julsmom]

ok so here is where I THINK we are...filed 13 on 6/14/10 with plan to strip lien on 2nd. Had to submit new plan with those #s showing (since we were not making 2nd mortgage payment) in the mean time, GMAC (2nd lienholder) hired attorney who filed proof of claim that it is secured due to deed; which of course our plan is to lien strip. Paid to have appraisal & all is in our favor. SO now the objection was sustained & we had to file new plan; I am so confused by all this. The atty said he has filed the adversarial motion on 9/27 within timeframe & now we get a date for lien strip; why the heck was that not done before? I am sure it is all in timing but hubby & I are completely confused. We are now awaiting that...in the mean time, I am thinking...just great, if this now doesn't work, where the HECK will I live since I will then be homeless, now that my credit is shot & I certainly will not be able to rent...uggh!

[newbie2]

ok so here is where I THINK we are...filed 13 on 6/14/10 with plan to strip lien on 2nd. Had to submit new plan with those #s showing (since we were not making 2nd mortgage payment) in the mean time, GMAC (2nd lienholder) hired attorney who filed proof of claim that it is secured due to deed; which of course our plan is to lien strip. Paid to have appraisal & all is in our favor. SO now the objection was sustained & we had to file new plan; I am so confused by all this. The atty said he has filed the adversarial motion on 9/27 within timeframe & now we get a date for lien strip; why the heck was that not done before? I am sure it is all in timing but hubby & I are completely confused. We are now awaiting that...in the mean time, I am thinking...just great, if this now doesn't work, where the HECK will I live since I will then be homeless, now that my credit is shot & I certainly will not be able to rent...uggh!

I'm a bit confused...objection to what (the lien strip?) That's normal. I don't know why you have to amend your plan though..doesn't make sense unless the trustee (or the lienholder) doesn't want you to include the 2nds payment as an expense since you will be stripping it.

[HHM]

Not 100% sure what you are asking.

It sounds like you and your attorney got tripped up on some of the technical requirements. But all is not lost. It sounds like the Motion to the Strip the lien (the 506 motion) is set for an upcoming hearing. That is the hearing that will determine whether you can strip the lien. Then the 2nd mortgage will need to amend its POC (or you can amend it for them). Then you will need to remodify your plan, if appropriate.

It sounds like things were done a little out of order, but that may not be the fault of your attorney, if the 2nd mortgage quickly filed a POC, this is what happens.

[julsmom]

Ok that makes sense...thanks. Yes, it seems that maybe the 2nd posted their claim sooner than my ATTY filed the motion to strip; perhaps that is what happened. And as to changing the plan, when we went for the 341 hearing, our schedules & the papers had the 2nd mortgage payment listed as an expense (which confused me too since we weren't paying it) and then the trustee objected & said we would have to amend and give those funds back; so that all was recalculated & a new plan was filed. So that is all good. But in the meantime, we haven't paid on the 2nd since before filing, so we will now be like 6 months past due....so I definitely stress over what would happen if the lien strip was NOT to be approved & we have told the ATTY that. The home is way under water with an ARM that would re-set so why the heck would I keep the house. So my thoughts would be to just give back the house if we can't get this done; I know then i would be able to stop paying the 1st mortgage & have a few months before getting put out to find a place. BUT i do worry as others have posted on trying to rent a place while in the 13BK so that is an added stress.

[justbroke]

Renting is usually NOT a problem so long as you're not going through a large management company, have a steady job (years at same employer), earn more salary per month than 4x your salary (more helps), and probably go through an individual owner. (Craigslist is good but be forewarned. There are some not-to-forthcoming landlords/owners out there trying to get people into their foreclosing homes! They do this to get "free" money and NEVER tell the tenant that they are in foreclosure. They just like collecting the rent.)

Be upfront and honest with anyone. Let them know that you're in Bankruptcy, but it's a Chapter 13, that you have a great job, have been there for years, earn more than 4x the monthly rent, and PROVE that you've never been evicted! (Yes, never being evicted is a POSITIVE thing. Most management companies won't even talk to you if you have any eviction, ever.) I was able to get approved to rent an apartment from a national management company, in a prime apartment complex ($$$$) being just 6 days out of Chapter 7 bankruptcy, with no deposit required and a $500 concession on the first month's rent! Don't try that at home!