Question on foreclosure

[tejacl]

Hello all

We filed chapter 13 and it was confirmed in May of this year, a year after we filed.

We had two properties and let one go back.

We received a foreclosure notice from the sheriff on the property we let go back. My understanding was this was just part of the process and we would not have to pay additional money. My husband is freaked out thinking because it talks about a law suit, etc, etc.

Also, once the bankruptcy is confirmed and as long as we make payments, our payments should not increase correct? My understanding was that there would be no changes after confirmation.

Our attorney sucks and it will take forever to get a response. Thanks for any help you may give!!

[HHM]

My guess is, you live in a state that requires Judicial Foreclosure (vs. Non-Judicial Foreclosure), which technically means, any foreclosure action is a type of lawsuit. Typically, foreclosure is how lenders re-acquire title to real property. Ideally, your attorney should have advised to offer the bank a "Deed in Lieu of Foreclosure" to avoid there having to be any foreclosure action, and the Deed in Lieu may still be an option. A "Deed in Lieu" is simply you signing the deed back to the bank, and the bank accepting it.

However, even if the Foreclosure action goes foward, you shouldn't have to pay any more money or even respond. Since you are letting the house go anyway, there is nothing for you to do regarding the foreclosure (except remove your personal belongings from the property if you want to).

Regarding post confirmation increases in payments, the answer is, it depends. Typically NO, the chapter 13 plan payments will not increase post confirmation. So I wouldn't worry about, but it can happen, but if you disclosed all your debt, all your income, and accurately portrayed your expenses, there should be no reason why your payments would increase.

[SinkingFast]

In addition to the information HHM gave you, there are 2 places you can check to learn what's going on with your case.

PACER costs, but you can find out the legal side of things. I think even tho you stated you intended to surrender the property, your Lender would have had to have gotten a Motion to Lift Stay from the Court to proceed with Foreclosure.

http://pacer.psc.uscourts.gov/

If you register at PACER using a Debit Card, you can have immediate access to look around. In the tool bar, use PACER Links and select Bankruptcy Courts. Then find your District and Query by SSN or Case number. Your user ID and password will be emailed to you in the next day or so. Also, PACER won't bill you until your charges reach $10. So if you just do a little poking around, you may not even get billed.

Another place you can check is the National Data Center. It's the financial side of your Ch 13 payment plan. Shows payments coming in and monies the Trustee has paid out to which Creditors.

https://www.13datacenter.com/index.asp