Mortgage co.filed motion for lift from stay

[kneedeep]

My husband and I filed a Chapter 13 in Feb. '07. We included our car payment, 3 months of past due mortgage payments and credit cards. We have gotten behind on our mortgage again, and they filed the motion for lift which was on 9/26. In order to stop it from happening we would've had to give them 1/2 of what we owed on the past due before the 26th. Well of course we didn't have it.

Someone suggested doing "deed in lieu of foreclosure" where we would give the deed back to the mortgage company and walk away from the house without owing anything. Is that correct?

Another suggestion was to convert to a chapter 7. Is that a possibility as well? We would like to know that if we were able to convert or do the "deed in lieu of foreclosure" would we still have to pay the past due mortgage payments that were added into our bk filing? Also, if we did a 7 would we have to pay our car payment.

This is all confusing, and our lawyer is worthless. They have not provided us much help at all. We live in Georgia, and have not missed a payment to the trustee.

I will greatly appreciate any help anyone can provide

TY

[BassBoy]

Lifting the stay is more than likely to begin foreclosure.

If you qualify for and convert to a Ch.7, you would not be responsible for ANY debts that are discharged. Even if there's an unpaid balance on items like cars and homes. These usually do not resale at auction for what's owed on them (because you are usually upside down), so there's an amount due.

With regards to a deed in lieu, if you are able to convert to a Ch.7, you can let the home go into foreclosure. It's not really that much of a difference to you.

In a Ch.7, you will have to state your intentions with items that you want to keep. This usally means doing a reaffirmation with auto loans and mortgages. Some lenders are still allowing debtors to do a ride through and you can continue to make the payments and you can keep the item(s). You will read this is popular with auto loans. On the other hand, you can walk away at anytime afterwards without being responsible for the deficency balance.

[kneedeep]

The reason we're thinking of "deed in lieu" is because it doesn't look as bad as a foreclosure does on your credit report. At least that's what we've been told. We definitely want to keep a our car, as a matter of fact we need to get a second vehicle.

Before BK our car pymt was $286 a month, with all of the items included in our filing it is $560 per month for our chapter 13. Just wondering if it's worth it to try to convert at this point. If we just let our home foreclose and stay in 13, do we still have to pay the past due payments on our mortgage the amount that was included in our filing in Feb. Our lawyer said we would have to continue until the house sold.

[Boscoe]

Knee Deep - A deed in lieu is first off, not much better than a foreclosure on your credit. But, since you are in your ch 13 bk, the foreclosure won't show up on your credit as the debt should read "included in wage earner plan". So I suppose you can DIL just to get the property off your name, but it won't matter to your credit.

Anyone, please confirm.

[kneedeep]

Along with the confirmation to the post by Boscoe, can someone please tell me how long after a chapter 13 discharge you can apply for another loan for a home?

TY