Should I bring my mortgage current before 341 meeting

[travman1974]

I filed CH 7 last week, 341 meeting scheduled for next month. I am going to be keeping my house, currently 3 months behind on both 1st and 2nd. My attorney is advising not to reaffirm the mortgages but continue to make payments.

Should I bring both mortgages current before 341 meeting or wait until after discharge to try and work out something with the lenders? Or will it be easier to get the loans modified if I am still behind.

[DeadManCrawling]

From a purely legal, technical view, you are supposed to be current if you want to keep the house. From a practical matter, I don't know if any courts still enforce that position with the real estate market the way it has been. Perhaps someone else can inform better on that.

One area of concern I have is this: You already filed, so your assets, for now, are property of the BK estate, and therefore the trustee. Where would the money come from to bring it current? Three months is probably a large number, relatively speaking, and the trustee may demand you turn it over to them, if this money is not previously exempted. Maybe it already has been covered, but I wanted to bring it up.

[albacore44]

Yes, I was cautioned to be current on any secured loan during BK. The lendor can ask for relief from the automatic stay, and If the UST gets involved, he may think your dumping your home and disallow your mortgage payment as an expense, and move to push you into a Ch-13

[travman1974]

Thanks for the reply's. I have resumed my monthly mortgage payments. My 341 meeting is next week. My first mortgage lender has filed a motion for relief from stay so they can start foreclosing. My parents have offered to help by paying the back mortgage as a gift. How would this affect the bk? I am afraid the trustee my force me to surrender to property since I am behind.