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Boy do we need help. Foreclosure, 2nd strip, and chapter 13.

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    #1

    Boy do we need help. Foreclosure, 2nd strip, and chapter 13.

    Backstory. Over a year ago we stopped paying everything and were planning to file a 13. We stopped paying 1st& 2nd mortgages originally hoping for a mod which never really happened, and now we are all through foreclosure but for the sherrif's sale which just isn't happening, 8 months and counting now since the foreclosure was final.

    I originally thought not paying the 1st would increase the total amount owed and help us with the strip, as we were right on the border, owing 137 on a house the county appraises at 135. I'm not sure now whether or not all the backpayments count. Do they? I'm in Ohio.

    What will we need to do to get the strip of the 2nd and hold onto the house long term? Have we waited ourselves into worse problems? Due to some health issues with our 5yr old (Staph) and having to run a small business that is struggling (sometimes feel like it has Staph too), our strategy for dealing with all this is simply to hang up on anyone and everyone calling about any kind of collections and stick our heads in the sand and wait for something to happen and nothing has. We haven't talked to the mortgage lenders (BOA) or anyone else this whole time.

    Really need some help. I've got a BK Lawyer appt. mid next week, but in the meantime, can anyone offer any answers or advice? Should we be talking to the lender? I'm really worried about having to move and creating stress on the little girls, especially with what they have been through.
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    #2
    No harm in talking to the first on the off chance you can get some sort of modification. Aside from that, all you can do is go speak to some BK lawyers.

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      #3
      Ultimately what it all boils down to is can you actually afford to keep the house? You will need to make that determination. BK can help eliminate some debt but it cannot help with economic problems, a business not making money, unemployment or cash flow problems....
      _________________________________________
      Filed 5 Year Chapter 13: April 2002
      Early Buy-Out: April 2006
      Discharge: August 2006
      "A credit card is a snake in your pocket"

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        #4
        Flamingo's question is the essential one: can you afford the house, to which I'll add: presuming that the second gets stripped in a Ch. 13 filing?

        Personally, with a smart BK attorney I don't see a strip being a problem, especially that you've got a year in arrears on the first, and that stuff adds up quickly...

        Good luck.
        No person in their right mind files a Ch. 13 with lien strip pro se. I have.Therefore, please consider me insane and clinically certifiable when reading my posts, and DO NOT take them as legal advice of any kind.Thank you.

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          #5
          Originally posted by shark66 View Post
          Flamingo's question is the essential one: can you afford the house, to which I'll add: presuming that the second gets stripped in a Ch. 13 filing?

          Personally, with a smart BK attorney I don't see a strip being a problem, especially that you've got a year in arrears on the first, and that stuff adds up quickly...

          Good luck.
          So the arrears do count in determining for the strip? That's what I was concerned about. We can afford the house with the strip, but if we have to pay the second as well, it's tough.

          Just looking forward to some clarity at some point...the unknowns are getting really stressful. Thanks!

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            #6
            Whatever you own on the first altogether is what counts, and that picture includes the arrears.

            I would strongly suggest a professional apparaisal - your attorney might know of someone - due to the fact of close values. In my experience, it's money well spent.

            If and when the house gets appraised, be open and tell them that you're looking for a "fast sale" value. You might be surprised at their findings...

            Good luck.
            No person in their right mind files a Ch. 13 with lien strip pro se. I have.Therefore, please consider me insane and clinically certifiable when reading my posts, and DO NOT take them as legal advice of any kind.Thank you.

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              #7
              Originally posted by turnipblood View Post
              We can afford the house with the strip, but if we have to pay the second as well, it's tough.
              Bigger question is do you have any disposable income in order to fund a Ch. 13 plan? Think of it as a "replacement payment" of the 2nd mortgage...

              Also make sure you ask how it all would work given your house has already been forclosed upon (i.e, does your state allow redemption rights?)

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                #8
                What OP needs is a *very* competent attorney.

                The one who knows how to tweak the numbers - presuming that they're close enough to be tweaked to begin with - so that the second along with the rest of unsecured creditors gets nothing or pretty close to it when the strip is approved...

                Good luck to us all.
                No person in their right mind files a Ch. 13 with lien strip pro se. I have.Therefore, please consider me insane and clinically certifiable when reading my posts, and DO NOT take them as legal advice of any kind.Thank you.

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