Just completed my 341 - a few questions...

[rbaronex]

Hello All,

I filed in Arizona, and just completed my 341 meeting a few days ago. I am on payment #2 - no confirmation yet.. Here's my question(s):

1. I am lein stripping a HELOC on my 2nd mortgage, and even though its noted on my CH13 paperwork, I have not seen any 'Motion to lien strip' or anything from my attorney. Everytime I ask if about that, he tells me not to worry, its taken care of. Is is that simple? I wasn't even asked to get an approaisal, (even though Zillow.com can easily show that my home is almost $80-100k underwater).

2. I have a second property that an elderly family member lives in and pays my mortgage payment for me. I'm hoping that the trustee will let her stay in the home, since it is not costing me anything to keep it, and is is $20k underwater - no equity. My question is, if I decide to give this property back to the bank or trustee while in the BK-13 plan, how would this be handed? Will I get hit with a foreclosure on my credit report and also prevent me from purchasing a different home down the road? Or do I just hand it to the Trutee and he gives it back to the bank? Is is that easy?

Thanks all,,

RB

[LadyInTheRed]

Hello All,

I filed in Arizona, and just completed my 341 meeting a few days ago. I am on payment #2 - no confirmation yet.. Here's my question(s):

1. I am lein stripping a HELOC on my 2nd mortgage, and even though its noted on my CH13 paperwork, I have not seen any 'Motion to lien strip' or anything from my attorney. Everytime I ask if about that, he tells me not to worry, its taken care of. Is is that simple? I wasn't even asked to get an approaisal, (even though Zillow.com can easily show that my home is almost $80-100k underwater).

IMO, your attorney's answer is unacceptable. He should explain the procedure to you and let you know the timing. I suggest you ask your attorney when the petition needs to be filed and when you can expect to receive a copy. While I didn' thave to sign the petition, I did have to sign a declaration regarding the value. You probably won't need an appraisal unless the mortgage holder objects. My petition stated that the value was based on zillow.com and the assessor's value which had recently been reduced due to market conditions. I never needed to get an appraisal because there was no objection.

[debtfreeindy]

Lien stripping is not automatic, it must be done by motion. So if he said he's taken care of it, then he would not only have had to file a motion, but the motion would have had to be granted. Probably should follow up on that one to make sure it's actually being "taken care of." As for the surrender of the real estate, it is as simple as that - it won't show up as a foreclosure and you should be able to secure FHA lending within 2-3 years after the bank takes it back. Remember too that you are responsible for the home until the bank actually takes possession through judicial process. You are responsible for city ordinances/codes, liability, HOA fees, etc.

[momofthree]

Ditto the others, you'd have to sign the declaration for the motion to be filed. Ours actually wasn't done until we were a year into our ch.13, but that is because we had 0% going to unsecureds, so there wasn't necessarily a deadline that the motion had to be completed by. If you are paying towards unsecureds though (no matter the percentage), the motion needs to be filed and hearing completed before confirmation.