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All done - not the usual way - let me tell you a story

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    All done - not the usual way - let me tell you a story

    I have saved my home from foreclosure and that is the ONLY reason I had ever filed for bankruptcy.

    I had no credit card debt, no outstanding bills that were pressing and one automobile.

    Ifiled in February 2006 and paid out my bankruptcy until November 2006 at which time I got laid off. Asked and got a 3 month moratorium which allowed me to find a job and work on saving money. Paid a lump sum to the mortgage company but was still behind about two months at the end of August 2007.

    Found out that with the new bankruptcy laws: 1. it was hard to find an attorney in my small town without a $1000 retainer (which I had used to pay down the mortgage) 2. Had less protection as a previous filer within a two year period 3. Did not get an automatic stay as a result and had to specifically request and be granted it. 4. The first bankruptcy had not paid down more than a few hundred dollars of my arrearage with the mortgage company but the $2500 attorneys fees were paid first

    So, I got bestcase bankruptcy software (free demo) made my own bankruptcy filing in September 2007 and got thru it and bargained with the mortgage company until they agreed to forgive much of my fees (this is in September 2008). With the financial climate today, I was able to have my bankruptcy dismissed (by not paying anymore fees - after I requested a mortorium for three months)

    My mortgage lender is Wachovia with a finance company servicing the loan.

    They were willing to work with me because in bankruptcy, they were really restricted and I pointed out to them that when I was only TWO months behind after having been 5 months behind due to illness and relocation expenses, they should never have filed another foreclosure proceeding adding an additional $3000 in attorneys fees in what I owed them.

    Now I have a mortgage that is exactly the same amount (including insurance and taxes which were not included before!) and my loan life has been extended 5 years. I don't have any restrictions like I have to pay by such and such time OR ELSE, and no more bankruptcy

    SO...there is hope and all these people who need to file CHAP 13 bankruptcy to save there home, PLZ DO IT! if your mortgage company will not work with you.

    find a good attorney, save up your money to pay them first BEFORE the mortgage, STOP paying all those credit cards - your credit is going to be damaged anyway being behind on your MORTGAGE.

    your house and automobile are your most important investments for most people and this is a guaranteed way to keep it until you can come up from underneath a drowning situation. It will at least buy you time.

    Good luck everybody.

    #2
    You missed one point...not everyone who cannot afford to pay their mortgage payment is eligible to file Chapter 13 and also on the other end, you need income to file a Chapter 13. Also, if you have other debts they will be listed in the Chapter 13 and if you dismiss the Chapter 13 by not paying your Plan payments, you are right back at step one as to when you filed, minus whatever you paid into the Plan.

    As to #4. in your above posting, priority payments are paid first in a Chapter 13 and that is why the attorney was paid first and as the Plan proceeds the secured and unsecured creditors receive the amount due them over the course of the Plan. That is why your mortgagor received only a small portion of what was due - it was spread out.

    You now have two bankruptcies listed on your credit reports which will be extremely damaging to you over the coming years, both being dismissed. I wouldn't suggest what you did to anyone.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006

    "A credit card is a snake in your pocket"

    Comment


      #3
      I will say it again - not the USUAL way

      I am not suggesting that anyone follow the path I HAD TO TAKE in order to prevent my house from going into foreclosure

      as to your points, FIRST & FOREMOST I have my house back to regular mortgage payments and I lost NOTHING except a lot of sleep until I got my peace of mind back

      and yes, people need to know that ATTORNEYS are the priority creditors ahead of your mortgage which is why they got paid off and it was worth it but I would have found somebody to help me file that wouldn't have cost me $2500

      and of course, you need to have a job and qualify for a chapter 13 filing

      lastly, I didn't plan it out that way that is what happened to me. I was very lucky and I am very sharp with numbers as I am a tax professional and worked in the legal field for several years.

      My point being that you can do it and if you have a concentrated interest and investment in your home, DO what you have to!

      Don't let your emotional hang ups about not paying some debts or the "cloud" on you for filing bankruptcy be a hindrance.

      So what if my credit is ruined and I have two dismissed bankruptcies on my file.

      I am living in my house and so is my college age son and I plan for him to keep the house in the family.

      In the economic climate today, that is the best many people will be able to do

      I was just a little ahead of the curve. Please try the HOPE project but get an attorney or get bestcase software and fill out the forms so you know what to expect

      good luck
      That is what is important

      Comment

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