I have been in chapter 13 for almost 2 years, Got behind on mortgage payments for 3 months, but been paying regular payments recently but not extra payments. Chase just sent a letter wanting their 4K that is passed due. I am moving next year and was thinking about letting the banks (Chase 1st mort., Citi 2nd mort) have the house since the market is crap and what I owe isnt much less than what I would be able to get out of the house if I sold it. Whats the downside to letting it go? Should I put the house up for sale and see if I can sell it before the bank takes it?
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First, you need to contact your lawyer and let them know your intentions on the home. You are protected in the 13.
Second, you need to contact the lender, and let them know what is going on (or the lawyer can do that, the lender is not supposed to contact you about this without approval from the lawyer anyway, I am assuming you have a laywer?).
Some lenders are offering up to 3k if you sell the home and work with them.
As for the only downside...its going to be your credit. But, you can always improve that later.
Good luck. -
Yes I have a lawyer, puzzles me as to why Chase sent me the letter directly instead of sending through the lawyer.
thanks for the info!Comment
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Keep that letter they sent you, maybe you can use that as leverage and stay in the home longer.Originally posted by spincr4hire View Post
Payback is a ***** for these creditors that don't want to follow the law.Comment
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what would your rent payment be compared to your normal mortgage payment?Ch 7 filed 8/15/11 341 9/22/11 Discharge 11/28/11
The rebuilding begins
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Getting behind on payments for a secured asset like a house during an active 13 opens the door to the lender (in this case, Chase) asking the court to allow them to begin legal repossession actions to take back the secured asset. Secured assets in Ch 13 are no longer protected by the automatic stay if the asset's loan payments get behind, especially by three months.
spincr4hire, you need to contact your lawyer immediately. Regardless of whether you intend to keep the house or surrender it, your lawyer needs to know what's going on so he/she can advise what your best options are in this situation. Good luck - please keep us posted on what you find out.I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to goComment
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Are banks less likely to pursue the foreclosure if you are underwater, and in a 13?Originally posted by lrprn View Post
I was two months behind at one point this year (I am in a 13), and nothing happened. but, I am going to keep the home and called the mortgage company and just told them that I had some car trouble to take car of before I could pay them.
There has to be more flexibility if you are in a 13, I am guessing. In fact, when I called my mortage company recently to (bluffing) tell them that I am consider walking away, and wanted a principal reduction (they laughed) to continue to stay in the home, they said that since I am in a 13, there was little they could do!
This 13 is a pain in the neck, but it has its perks too.Comment
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