Stopping Foreclosure

[kickinem]

Hello everyone.
My fiance and I lost our jobs Jan 31 this year. We applied for a loan modification in Feb and stopped paying on the mortgage "customer service at GMAC said not to worry about it and they will contact us with the modification". My fiance filed for Chapter 7 in April and discharged last month. We didnt include the house, we had all intentions of keeping it, just needed a leaner payment while on unemployment. We have now received a "motion for release of stay and abandonment" from atty's representing the mortgage company. So, I called our lenders to see how our modification was doing. Since she filed for bankruptcy they stopped processing the paperwork and didn't tell us. We are now five months behind on the mortgage. My understanding is following this hearing, they will start the foreclosure process "correct me if I'm wrong". Will we be allowed to restart a loan mod and defer all arrears? Would me filing Chapter 13 save our home? We're not sure what to do now.. we cant lose the home...

[bellee]

Hello everyone.
My fiance and I lost our jobs Jan 31 this year. We applied for a loan modification in Feb and stopped paying on the mortgage "customer service at GMAC said not to worry about it and they will contact us with the modification". My fiance filed for Chapter 7 in April and discharged last month. We didnt include the house, we had all intentions of keeping it, just needed a leaner payment while on unemployment. We have now received a "motion for release of stay and abandonment" from atty's representing the mortgage company. So, I called our lenders to see how our modification was doing. Since she filed for bankruptcy they stopped processing the paperwork and didn't tell us. We are now five months behind on the mortgage. My understanding is following this hearing, they will start the foreclosure process "correct me if I'm wrong". Will we be allowed to restart a loan mod and defer all arrears? Would me filing Chapter 13 save our home? We're not sure what to do now.. we cant lose the home...

Where are you located ?

[kickinem]

I'm in Mineral Ridge, Ohio near Youngstown...

[HHM]

First, loan modifications are voluntary by the bank, they are not required to give you one. So, unfortunately, whether you can restart the loan mod process will be up to GMAC...you can always try.

I am little confused on one point, if your spouse is discharged, the bank doesn't need a Motion to Lift Stay, the stay is automatically terminated at discharge.

In any event, are either of you working? Is the home in a negative equity situation (worth less than is owed)? How many mortgages?

[kickinem]

First, loan modifications are voluntary by the bank, they are not required to give you one. So, unfortunately, whether you can restart the loan mod process will be up to GMAC...you can always try.

I am little confused on one point, if your spouse is discharged, the bank doesn't need a Motion to Lift Stay, the stay is automatically terminated at discharge.

In any event, are either of you working? Is the home in a negative equity situation (worth less than is owed)? How many mortgages?

Yes this confuses me too. We have a date for the hearing in about a month. The documents says its for a "motion for relief of stay and abandonment". Her lawyer sent us a letter that we have to send to the mortgage company granting permission for them to communicate with us and work on a modification. We are both collecting unemployment and will continue for another 9 months or so unless we find work. another thing that confuses me is the county appraisal and the appraisal we had to buy the house. The county lists it as being worth 60k and the private appraisal set it a 110k. We only have one mortgage.

[HHM]

County appraisals are unreliable, you need someone to give you a current market analysis. In this real estate climate, any appraisal that is older than 6 months is worthless.