I wanna scream!!!!!!!!!!!!! Have questions!

[desertgrl74]

Ok...I had my 341 meeting Oct. 5th of this year. I filed chp. 7. I was going through a loan mod to redo my mortgage, but didn't send in the paperwork. Now, I just got paperwork regarding my mortgage and the attorneys for my mortgage company have a court date set up for November 25th! Why??? I don't understand some of the stuff in the paper work. So, if anyone can help me better understand all of this....it would be great. Basically, it says that the mortgage company moves the court for an order terminating the automatic stay of 11 United State Code 362 as to movant, so that Movant may commence and continue all acts necessary to enforce its security interst in real property (states my prop. address).

There is a court date set up for Nov. 25th and I am flying out that morning to visit family! What am I supposed to do? What happens if I don't show up? I am so worried right now! I don't know what to do! My lawyer is not even helping me with my mortgage. As I was intending to keep my place when i filed, then I became late on my payments and then had 341 meeting. Now, mtg company is bringing me to court. Ahhhhhhhhh!!!!! I'm stressing now! I really need some advice.

[justbroke]

I forgot if you stated that you filed through an attorney. If you have, then anywhere below where I say "you" I mean "you through your attorney".

The Bank is filing for what is called a Motion for Relief From the Automatic Stay (MRFS). This allows them to pursue all their "legal" remedies to either get you to cure any missed payments up to and including foreclosing upon your mortgage.

I know this may be repetitious, but it's worth saying again. If you are in a Chapter 7 or Chapter 13, you must stay current on your direct mortgage payments or plan payments, respectively. If you miss even a single payment, the creditor is allowed to petition the Court for an MRFS so that the creditor can pursue all legal options up to and including foreclosure. I know those are words you don't want to hear right now, but I have to say them.

If you want to give up the house and not fight for it... don't attend the hearing. If you do this, the creditor (bank) will win a default judgment and will be granted relief. They can then proceed with collection activity outside the bankruptcy process. This activity can include anything from offering you a forbearance, modification, or installment plan to make up the missing payments. However, it can also include foreclosure.

If you want to save the home, you need to find a way to fight the MRFS. You need to get current again on your mortgage. I don't know if you were re-affirming your mortgage or not, but this may certainly affect that.

Bottom line, you need to determine what you want to do with the home. Should you choose to keep the home (fight for the home), you then need to come up with a winning strategy to get the creditor's request for relief denied and to come current... not necessarily in that order.

[AngelinaCatHub]

OK, this is normal. They are only asking for a relief of the automatic stay to foreclose upon your house. If you were to attend, you could petition the Judge (verbally) that you wished to reaffirm, or keep paying on the mortgage to secure your house. (Ride through is preferred, IMO).

The flaw in this is that you did fall behind. That could be a problem. It depends on what you wish to do and make some phone calls Monday and see what can be done if you can pick up on the past due payments to current. 'Hub

[aljohnson007]

What they are doing is filing for relief from the auto stay so thay can proceed with foreclosure. Why not try and call their attorney to see if you can work something out?

[desertgrl74]

Thanks everyone! I really was ready to go through a foreclosure. I think I'm more worried about what would happen if I didn't show up.

I'm going to see if I can call my mtg company and see if I can handle this before the court date. Maybe do a forebearance or another loan mod. But, I may have to foreclose. I was hoping the paper work was going to be the discharge! But, no...now I have to deal with this. Arg!!! And this too shall pass

[SleepWellNow]

We received a Relief of Stay notice today too. I don't know why the attorney just didn't wait until we are discharged (other than making some extra money by filing this). Our 60 days are up on Monday. Also, on Sept. 30th we were offered a loan mod. Yesterday we over-nighted the signed and notarized mod agreement along with a down payment. We reaffirmed the loan and our first payment under the mod agreement is due Dec. 1st. They did say in our loan papers they couldn't finalize the mod until we are discharged. Perhaps they are using this method to get the property out of the BK to finalize the mod. I'm calling the lender on Monday. We'll see...

[DeadManCrawling]

We received a Relief of Stay notice today too. I don't know why the attorney just didn't wait until we are discharged (other than making some extra money by filing this). Our 60 days are up on Monday. Also, on Sept. 30th we were offered a loan mod. Yesterday we over-nighted the signed and notarized mod agreement along with a down payment. We reaffirmed the loan and our first payment under the mod agreement is due Dec. 1st. They did say in our loan papers they couldn't finalize the mod until we are discharged. Perhaps they are using this method to get the property out of the BK to finalize the mod. I'm calling the lender on Monday. We'll see...

This is a very interesting post. Were you current on your mortgage at the time of filing Ch 7?

Also, what state/district?

I think we will see more of these sorts of cases as the years unfold.

If you were behind on payments, but working on a mortgage mod, did you state you would reaffirm? Did you, in fact, sign the reaffirm papers?

When did the bank mod resume, if it was interrupted by the BK 7? Or was it interrupted at all?

Please share. This info will be invaluable to many others here.

[SleepWellNow]

We are in the Southern District of California.

Prior to filing our BK, we were set up with a trial modification based on verbal information. We were several months late. After two months of trial payments, we filed our BK. Once we filed, the lender would not accept any more trial payments and said our trial agreement was null and void. Our lender's BK department said we needed to send in a complete loan mod package, which we did. Amazingly enough, within 2 weeks we received our loan modification approval. Reaffirming the loan was incorporated in the loan modification agreement. The trial payments were held in an "unapplied funds" account and are being applied to our new loan. This process actually went rather smoothly. I think working with the Bankruptcy Loss Mitigation department instead of the regular Loss Mitigation Dept. made all the difference. According to my negotiator, once we receive our dischage, it's a done deal.

We stated in our BK our intent was to keep the property. Since we are upside-down with no equity, the Trustee was not interested in it. One more note, this is an investment property.

[desertgrl74]

Well, in my case I didn't reaffirm it because I did a chp 7. At the time I retained my atty, I was current and intended on keeping my home. By the time I paid my fees and officially filed, I was behind and realized that I was headed towards foreclosure. I had 341 meeting and now this happens. So, I'm not sure what I want to do. I'm probably going to have to just foreclose. I can't afford to do a forebearance..maybe a loan mod, but not sure. It would depend on when the payments would be due. Plus, I am going to call my atty about this and wondering if he can even cousel me on this matter since I did a chapter 7 to get discharge cc debt and initially wanted to keep my place. Hope it will be all over soon!