We need to file for an advesary meeting after being confirmed???

[cbmmom5]

Hello, My husband and I have been confirmed since 10/12/2010. We have been making our payments but I noticed through the national data center that no payments had been being made to our creditors, including to our trustee. I called the trustees office and asked if there was an issue and found that our attorney still needed to complete something.

We were able to strip our 2nd mortage and again we were confirmed. Our trustee told our attorney that we had to still fill an adverary meeting(?) regarding or 2nd mortage. This just sounds way out of line and does not make sense to me since we were confirmed. Our 2nd mortage company did not submitt an objection to our confirmation.

Has anyone else experience this? Any thoughts would be appreciated.

Connie

[LadyInTheRed]

The term is "adversary proceeding." You say you were able to strip your 2nd. But, it sounds like that hasn't been done. Your attorney needs to file a petition to strip the lien which is an adversary proceeding. Until the court orders that the lien is unsecured, the trustee can't make payments because she doesn't know whether the 2nd mortgage is a secured creditor.

[cbmmom5]

Thanks for the feedback Ladyinred. Do you know if the bank will get to object to the request to strip the loan? They did not object to the plan and the stripping of the loan was in the plan.

[car67]

Yes the bank does get to object but if their is no value in the home to secure the second then its a moot point you will prevail.

[LadyInTheRed]

Yep. They'll only object if they think you are undervaluing the property.

[shark66]

Has the bank holding the second mortgage filed Proof Of Claim initially?

Good luck and let us know.

[cbmmom5]

Hi there, The bank did file a proof of claim. They did not file an objection to our plan and we were confirmed. I am just hoping they will not object so we do not have to get an appraisal. I am not worried about is coming back negatively, I just am worried about coming up with the money for one. What happends if they do not show up for the hearing or do not object? How much time is given to them to object? Thanks for the help

[shark66]

The first thing you need to find out is whether your attorney is going to charge you extra for filing an adversary proceeding. In my neck of the woods that is a common practice.

You will have to get an appraisal, no question about it. That's the only way you'll be able to prove that the second mortgage is wholly unsecured - at least in my limited understanding.

Good luck.

[LadyInTheRed]

If they do not show up at the hearing or object, your petition will be granted. In some courts, a hearing is only scheduled if there is an objection. In my court, the creditor had 21 days to file and objection or request a hearing. The creditor did not object within that time, so my attorney submitted an order and the judge signed it. Procedures and deadlines may vary by court.

You won't necessarily need an appraisal. Ask your attorney. My attorney used Zillow.com value. If the bank objected, I would have had to get an appraisal. My house is so far underwater that we knew the bank would not object.