I have just received a Hardship Discharge. I am letting my house go into foreclosure, simply because in May I won't be able to afford to keep paying the mortgage payment and also pay utilities and upkeep, along with other personal expenses. I also could not afford to pay an attorney to fight this for me.
My husband passed away in April and I was granted Chapter 13 Discharge in September. My attorney filed in July for the Hardship Discharge. I sent the trustee the amount of my mortgage payment. (they did not pay that payment I later found out).
In August I received a letter from the Trustee informing me that I should resume making regular mortgage payments to the mortgage company. That day I called the mortgage company and asked when the due date for the loan was. They told me that it was due the first, but that I had 15 days, grace period. I explained that my social security check was what I had to use to make the payment and that it did not come until the second Wed. of the month. They told me that it was OK to post date the check.
In late Aug. I sent the regular Sept. payment which was just over $1000. and a week later I noticed that my check had not cleared my bank. That morning I received a letter from the mortgage company saying that I still owed $1300. in attorney fees that were not payed by the trustee and they explained that these fees had to do with fees related to our original filling of Chapter 13. I called the mortgage company to find out why my check had not cleared. (They now refused to talk to me, saying that my name wasn't on the mortgage. They did this for several days when I tried to contact them, and they informed me that they would not talk to my attorney because his name was not on the mortgage.) I then contacted my attorney and I brought him copies of all the checks that I had sent the Trustee. He printed out a copy of all the payments that the Trustee made and it showed that the $1300, had been paid and he faxed it to them. Then I received another letter saying that I was in arrears for Aug. payment because the court Trustee did not pay Aug. They wanted Aug and Sept. payment.
My Attorney talked to the Trustee and they mailed my a check for the amount of my mortgage payment. I finally got it straightened out with the Morgage company that my name was on the deed and mortgage papers and finally they would talk to me. When I called them they told me that they told me that I couldn't send two payments (Aug. and Sept. because now they were saying that the Trustee didn't pay the July payment. I called my attorney and he faxed them copies of my checks to the Trustee and the print out showing that July payment was paid to them. They then sent me a letter saying that they wanted a cashiers check for July, Aug, Sept, Oct. and Nov. since it was coming due. I didn't have the money for July and I wouldn't have the money for Nov. until the 2nd Wed. in Nov. They returned my Sept. payment to me. I had Aug. Sept. and Oct payment in the bank. I was now out of money and couldn't find a job. I couldn't get help with my bills from FIA because I had spendable income in my bank account. I thought about asking the VA for emergency help, but thought they too would consider the money in the bank as spendable income. I now had no choice, but to use the money from one of the payments to pay my bills. Now I find myself in the position of not being able to make the payments. My attorney sent them a letter, and threatened to take them to court for what they were doing.
I have since informed my attorney that I am letting my house go. I have received another letter saying that I owe $1300, in spite of the proof to them that the Trustee paid them.
I then started figuring out my that the the amount I still owed was only $7,000 less than the original amount of my loan. The estimated value of my home was only about $10,000 over the original loan. The value would have been more, except that home prices in my area have droped five to eight thousand and my home needed expensive repairs, and code violations fixed. I didn't have any insurance money at all so I didn't have any money to put into the house to sell it and the real estate agent would take approximately 6% and all of this factored and the fact that I needed to sell the house by June. If I couldn't sell by June I wouldn't be able to make payments and I would not loose the house and not have a cent to my name. If I let the house go into foreclosure, I can live here for 6 months and save the payments to use as a down payment on a manufactured home and keep my cost of living down to something I can afford.
I am now nervous about whether I am making the right decision and whether the mortgage company will try to get any more money from me. Also I don't know the process to follow which has me a little scared. I have been through a lot this past year while my husband was sick with cancer and his subsequent death. My husbands brother and my church have helped me considerably. My health has not be good and my memory worse. When I start saving these payments, the FIA will probably take away the medicaid that I have. I am still trying to figure out if the mortgage company was trying to force me into foreclosure.
My husband passed away in April and I was granted Chapter 13 Discharge in September. My attorney filed in July for the Hardship Discharge. I sent the trustee the amount of my mortgage payment. (they did not pay that payment I later found out).
In August I received a letter from the Trustee informing me that I should resume making regular mortgage payments to the mortgage company. That day I called the mortgage company and asked when the due date for the loan was. They told me that it was due the first, but that I had 15 days, grace period. I explained that my social security check was what I had to use to make the payment and that it did not come until the second Wed. of the month. They told me that it was OK to post date the check.
In late Aug. I sent the regular Sept. payment which was just over $1000. and a week later I noticed that my check had not cleared my bank. That morning I received a letter from the mortgage company saying that I still owed $1300. in attorney fees that were not payed by the trustee and they explained that these fees had to do with fees related to our original filling of Chapter 13. I called the mortgage company to find out why my check had not cleared. (They now refused to talk to me, saying that my name wasn't on the mortgage. They did this for several days when I tried to contact them, and they informed me that they would not talk to my attorney because his name was not on the mortgage.) I then contacted my attorney and I brought him copies of all the checks that I had sent the Trustee. He printed out a copy of all the payments that the Trustee made and it showed that the $1300, had been paid and he faxed it to them. Then I received another letter saying that I was in arrears for Aug. payment because the court Trustee did not pay Aug. They wanted Aug and Sept. payment.
My Attorney talked to the Trustee and they mailed my a check for the amount of my mortgage payment. I finally got it straightened out with the Morgage company that my name was on the deed and mortgage papers and finally they would talk to me. When I called them they told me that they told me that I couldn't send two payments (Aug. and Sept. because now they were saying that the Trustee didn't pay the July payment. I called my attorney and he faxed them copies of my checks to the Trustee and the print out showing that July payment was paid to them. They then sent me a letter saying that they wanted a cashiers check for July, Aug, Sept, Oct. and Nov. since it was coming due. I didn't have the money for July and I wouldn't have the money for Nov. until the 2nd Wed. in Nov. They returned my Sept. payment to me. I had Aug. Sept. and Oct payment in the bank. I was now out of money and couldn't find a job. I couldn't get help with my bills from FIA because I had spendable income in my bank account. I thought about asking the VA for emergency help, but thought they too would consider the money in the bank as spendable income. I now had no choice, but to use the money from one of the payments to pay my bills. Now I find myself in the position of not being able to make the payments. My attorney sent them a letter, and threatened to take them to court for what they were doing.
I have since informed my attorney that I am letting my house go. I have received another letter saying that I owe $1300, in spite of the proof to them that the Trustee paid them.
I then started figuring out my that the the amount I still owed was only $7,000 less than the original amount of my loan. The estimated value of my home was only about $10,000 over the original loan. The value would have been more, except that home prices in my area have droped five to eight thousand and my home needed expensive repairs, and code violations fixed. I didn't have any insurance money at all so I didn't have any money to put into the house to sell it and the real estate agent would take approximately 6% and all of this factored and the fact that I needed to sell the house by June. If I couldn't sell by June I wouldn't be able to make payments and I would not loose the house and not have a cent to my name. If I let the house go into foreclosure, I can live here for 6 months and save the payments to use as a down payment on a manufactured home and keep my cost of living down to something I can afford.
I am now nervous about whether I am making the right decision and whether the mortgage company will try to get any more money from me. Also I don't know the process to follow which has me a little scared. I have been through a lot this past year while my husband was sick with cancer and his subsequent death. My husbands brother and my church have helped me considerably. My health has not be good and my memory worse. When I start saving these payments, the FIA will probably take away the medicaid that I have. I am still trying to figure out if the mortgage company was trying to force me into foreclosure.
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