Will making a payment stall the foreclosure process?

[vicmost]

I'm filling chapter 13 in may and I haven't made any payments to my 1st or 2nd since December. I've been waiting for the home value to drop so I can lien strip my second. I recieved my acceleration statement from my first telling me I'd better pay up by March 15th or else! I will be in a position to make a payment or two by March 15th but when I spoke to my 1st (Wellsfargo) they really wouldn't say if it would stall the process or not....Of course they said it wouldn't hurt though
Should I make the payment? Any other methods of streching this out a bit? I spoke to a bk lawyer and he said I shouldn't worry too much about the second since they are almost completely unsecured at this point (<5k). He was much more concerned that I catch up on the first...I just need a little bit more time...

[vicmost]

Anyone out there???

[Trixie007]

Foreclosure is quite a bit down the road for you I would think. We let two homes go to foreclosure - they waited 4-6 months I think before they gave us a NOD.

[vicmost]

Thanks Trixx007,
Isn't the acceleration clause the NOD? Or is the NOD sent certified mail?... I recieved a notice from the post office that I have certified mail requiring my signuture.
Perhaps it is my second mortgage lender, Country Wide. They call me at least 5 times a day. A lawyer told me that since they have virtually no equity they will be the extremely motivated!

[brokenbuthealed]

I think the acceleration clause is the NOD. Sending in only 1 payment may not stall the foreclosure. I had a property that was several months behind and when I sent in a payment, they did not apply it to the account. They put it in like an escrow account and wouldn't apply it until the full past due balance was sent in. So, of course the lender would say it couldn't hurt because it's more money they will get, but if they can't assure that it will be applied without the full past due amount being paid, there is no advantage to you.

[HHM]

If they have accelerated, sending in a payment won't accomplish anything..in fact, they would probably send it back.

[vicmost]

Thanks for the information. I'm gonna catch up the payments on my first and when the second starts the foreclosure process I will proceed with my BK...I only need another couple of months..

[hnhlvr]

Bad idea. . .Sorry, but the ONLY the first mortgage will be involved with the foreclosure process. The second will send you to collections and will NOT have anything to do with the foreclosure process.

When we quit paying, after three months our SECOND was sent to collections, whereas our first was eventually foreclosed on just the beginning of Feb.

Why would you pay on either when you plan to file and not keep the house?

[vicmost]

Why would you pay on either when you plan to file and not keep the house?

I plan on keeping the house. I'm just waiting for the home value to drop a bit more and I need to save up some money for the bk process.

I will be filing a chapter 13. In chapter 13 if the current market value of the house is less than what you owe on the first mortgage you can "lien strip" your second or third mortgage..They in effect become an unsecured creditor...The catch is that you have to complete your chapter 13 plan for this to stick. Otherwise there lien on the property will return and they can foreclose.

I'm not sure what you mean about the 2nd sending the acount to collections?
Did they file a lawsuit against you and try to get a judgement? It's my understanding that a secondary lender has to foreclose. They would of course have to pay off the first and most likely would not want to do this if the house is upside down.