Relief from Stay

[dragsnguns]

I am 24 months into a 48 month chapter 13. I am 10 days late on my SECOND mortgage and they have filed for relief. Both the first and second have been made whole by the Trustee.

My lawyer called and said that there was no alternative to losing the house, that I should stop paying the mortgages, the Trustee and convert to a Chapter 7. I called the SECOND mortage holder's BK dept and was told they had no plans to pursue foreclosure...they just wanted out from under the court.

Two questions:
1) what is the likelihood that either mortgager will seek foreclosure if they have been made whole and my payments are current (except for the 10 day late on the SECOND)?
2) what is the likelihood that the Chapter 13 trustee will move to dismiss if she has been paid current?

Thanks in advance.

[HHM]

As to (2), have you missed any payments to the trustee. If not, then the trustee has no grounds to move to dismiss your case.

As to (1), if all payments to the mortgage holder are current, regardless of the source of those payments, I would imagine that under state law they cannot proceed with foreclosure because there is no default.

But if they get relief from the automatic stay, the next time you are late, they can proceed with foreclosure without passing GO, (so to speak).