Chapter 13, mortgage significantly increased please help!

[Henryzx]

Hello everyone, I'm in California and filed chapter 13 before the law changed ins september of 2005. with unsecured claims is @ 63%. My payment is $3,240/mon for 51 months

My trustee just informed me that my mortgage (1st and 2nd) are both increased to ADDITIONAL $1100/mon (new payment will be $4,340/mon) , which is unbareable for me. Is there anything my lawyer can do to help me ? and is there any thing that I could do?

Please help, your response will be greatly appreciated! Thanks in advance!

Henry

[13inOR]

You can have your attorney request an amended plan to make your trustee payment less to accomodate the mortgage increase. Call your attorney right away, I am sure this is something that could be requested. That is the customary process. We have had to do that ourselves, only not for a mortgage increase, it was for braces for our son, and they even approved that.

[Jman30]

You can have your attorney request an amended plan to make your trustee payment less to accomodate the mortgage increase. Call your attorney right away, I am sure this is something that could be requested. That is the customary process. We have had to do that ourselves, only not for a mortgage increase, it was for braces for our son, and they even approved that.

Could you explain this more? This is very interesting. Your son needed braces and to be able to afford the monthly payments on the, you were able to reduce your Chapter 13 payment?

[13inOR]

Heres what we did: The orthodontist required a $2000 down payment and monthly payments of $75. Our attorney submitted the request to the trustee, what he did was amend our plan to allow for the down payment by
making our payment $302 for 2 months instead of $1302--this allowed us to accumulate the $2000 for the down payment.
We did not have to amend for the monthly payment because our car insurance dropped about twice that amount
since we started the plan, so we could easily absorb it, but we could have had we needed to. It really wasnt a big deal at all, and we had our answer back in a week or 10 days. They just stopped the wage order for those 2 months, I paid the $302 directly, and then the wage order was reinstated back to normal after that time. Hope this makes sense, let me know if you have more questions.

[Jman30]

Heres what we did: The orthodontist required a $2000 down payment and monthly payments of $75. Our attorney submitted the request to the trustee, what he did was amend our plan to allow for the down payment by
making our payment $302 for 2 months instead of $1302--this allowed us to accumulate the $2000 for the down payment.
We did not have to amend for the monthly payment because our car insurance dropped about twice that amount
since we started the plan, so we could easily absorb it, but we could have had we needed to. It really wasnt a big deal at all, and we had our answer back in a week or 10 days. They just stopped the wage order for those 2 months, I paid the $302 directly, and then the wage order was reinstated back to normal after that time. Hope this makes sense, let me know if you have more questions.

Yes, that makes total sense. I had mine amended when my wife stopped working after our daughter was born. It decreased our payment. When she started working, we had to amend it again but it didn't go back up again as much as it was originally because we had two kids in daycare instead of two.

The main reason I was interested is because my wife is having orthodontist issues and may need braces and I was interested how we could get that done. Thanks for the information!

[StaciMM]

One other thing to add... If part of the issue is that the amount you need to pay in has a minimum threshold (due to nonexempt assets, priority debts, etc.) then you could propose increasing your plan from 51 months to 60.

[Lesa13]

Henry, I'm in the same boat - my mortgage went up $200 a month. I am waiting for my atty to amend/modify my plan. Hope the trustee sees it my way

I have not heard from one single person NOT in BK that they could take a large increase/hit like mortgage going up without an issue - lots of people are living paycheck to paycheck, even if they aren't in BK.

[Ch13experts]

Hi Henryzx,
I'm a new subscriber as of today. I was looking at your request and thought you might need some advice; I hope you may have found this out already. My business partner and I are mortgage bankers in the San Francisco Bay Area and we have had great success helping people get out of their Ch 13 very early at the terms set forth in their original filing. I must say that our experience is that most trustee's are willing to allow people to pay off their 13 early without having to pay the full 100%. Some Trustees are not hearing this at all but I have found that with a simple letter explaining the situation, we have worked out dozens of early payoffs. We just went to documents on a lady who was able to reduce her 13 by 34 months and pay off her unsecured debts at $0.08 on the dollar. She saved $87,000 in payments to the trustee. Go on my site and send me an email or call me in the morning. Good luck and I hope everything works out for you.

Best wishes,

Ed and Luke

[Minnymouth]

BEWARE OF SCAMS AND ADVERTISING regarding early payoffs and quick payoffs of Chapter 13's in this section of the forum.
Yes they can be done, but request information from these people at your own risk!
If it sounds "too good to be true" - IT PROBABLY IS!!!!

Always check with your attorney before signing anything........ Remember you are under the control of the Trustee.

Minny

[Ch13experts]

Wow! Is this how this works? Suddenly I'm a Scam artist and an advertiser aka liar? Well at least you’re open minded…LOL

What you do is up to you. I have no unscrupulous intensions. It is up to you if you want to do the research or not. My experience is much like Minny's except that I have been involved with numerous Ch 13 cases throughout the state of California. In my state, the trustees vary from county to county on how they interpret the law. My suggestion is that everyone checks with their trustee's office.

As an example, the San Francisco trustee will not allow early payoffs at anything under 100% before the 36th month. However, 8 miles away across the Bay Bridge the Alameda trustee will allow people to buy out their 13 as early as 1 year into their payments at the agreed to Pot Plan. 14 miles to the south, the San Jose trustee will allow you to pay off at the pot plan in the 3rd month of your plan. That’s right…the 3rd month. You can call them and ask for yourself. You tell me if I'm being a Scam artist now.

Look I'm not the end all be all of everything mortgage, but I know bankruptcy in my State. My suggestion is that you check with your trustee's office and see what they will accept. Your lawyer may not know how the trustee is handling these requests. In fact the attorney on the case I mentioned in my previous post was so blown away by what we were able to do for my client, he has asked for a meeting with us to see if we will be able to duplicate our efforts for his other clients.

I've laid it out there for all to see. I'm not "Around the Corner" but you can click on my name and see where I'm from and what I do. I know that my information and intensions are good.

If you’re interested in knowing the truth about what is allowed in your area, call the trustee’s office, ask for the escrow department and talk to them. After that conversation, you will know more than 90% of the people in the mortgage and legal industry because you will have gotten it from the horse’s mouth.

Good luck and God Bless,

[Jenny]

I'm just curious so you don't have to answer if you don't want to but why would you get an ARM mortgage with rates at all-time lows? ARMs are usually only recommended when interest rates are likely to go down, or your income is likely to increase significantly, or you plan to move before the adjustable part of the mortgage kicks in. Even now, if the ARM hasn't kicked in, 8.75% sounds really high. Did you get the mortgage through a sub-prime lender?

You can probably get the Chapter 13 payments adjusted, but with the cap that high and rates continuing to rise, can you really afford the house?