Can a Chapter 13 reverse a foreclosure? Please help!

[slandsharkk]

Hello! This is my first post, unfortunate that I need to post at all, but I'm glad there is a place that I can possibly get some questions answered.

I need to be clear about my question. I have a home that is already foreclosed on (a couple weeks ago) and I want to know if filing for chapter 13 bankruptcy can reverse the foreclosure? I know it can be used to stop a foreclosure, but can it reverse one? My home was sold to Fannie Mae the same day it was foreclosed on.

Currently I'm full-time employed (have been for 6 months). The previous 3 lenders of my mortgage (yes, it changed hands 3 times during 2010) failed to respond to my application of a loan modification and did not return phone calls when I tried to get a hold of them. Each time I sent in the application for the loan modification a week or two later I'd get a letter saying the loan was sold to a new lender. The 3rd time this happened (after submitting my application again) they foreclosed on my home, but still did not respond to my application and did not respond to my requesting a phone call return, etc. I feel really lost here and I guess pretty helpless.

Are lenders required to respond to applications for loan modifications?

I'm within days of being forced out of my home. I was originally unemployed for 1.5 years which lead to me not being able to afford the mortgage (I last made a payment in november of 2009, so it's been a year without making a payment). I have been full-time employed for 6 months, but am not making enough to make the full mortgage payment (took a drastic reduction in pay). So, I would need a loan modification of some sort to continue to pay. Best case would be to get the foreclosure reversed and to then get the mortgage modified to something I can afford. At the very least I want the foreclosure off my record, I'd prefer to have a chapter 13 bankruptcy.

Can anyone help? Even the attorney's I'm calling locally are really slow to return calls and it feels like no one really cares about people in my situation (I guess the no sense of urgency by the attorney's is bugging me). I have spoken with 1 attorney who thinks he can use the chapter 13 bankruptcy to reverse the foreclosure.

Any advice? Thank you!

[despritfreya]

While you have posted this twice, I will respond to this thread. The direct answer is "no". Once the foreclosure has been completed under State law, a Chapter 13 will not help as you no longer have any "strings attached" to the property. The Bk Court has no authority to set aside the foreclosure as there was no Automatic Stay in place at the time the transaction was completed.

As to the lender not responding to your overtures to try for a loan modification, I cannot tell you if there is a "law" that says it must respond. My belief is that any such response is really up to the lender but I am sure someone else on this forum will have a more definitive answer.

Des.

[papie]

No, a Chapter 13 will not reverse a foreclosure. I'm not sure what kind of miracle it would take to reverse a foreclosure in a Chapter 13.

Secondly, if it did, Chapter 13 is for those who can afford their current monthly payment (they don't care about what you could afford IF it was modified.)

Third, at the present time, the mortgage company has no obligation to honor your modification requests. The bottom line is that you went into default and that ultimately rests on you.

Lastly, I would be very leary of any attorney that thinks they can reverse a foreclosure. Did he ask for a few thousand to get started? That would be a pretty telling sign. If you're simply calling and leaving a message telling attorneys you want to reverse a foreclosure, that's probably why they're not calling you back, because they would never agree to attempt such a case.

[shark66]

There's a 99.99% chance that your house is as good as gone, so take that as a starting point for what I'm about to say now...

You need an attorney who specializes in foreclosure defense, and an excellent one at that. Everything else comes down to pretty much a simple math problem: how much time they can promise to buy you before you're actually evicted, and at what cost.

Compare that figure with what it would cost you to rent a similar place under the worst of circumstances and decide...

I've witnessed a couple of cases in my immediate neighborhood where people were able to prolong the eviction for more than a year using the services of such attorneys. No clue on what it cost them, though...

Good luck.