Had appt with my attrny today

[sandhall]

Just a little background first we filed may 06 confirmed july 06 anyway we let our house go back in the plan just a few months ago we got a letter saying the house sold and no def bal. SC is a state for no def amt. anyway we wanted to convert to a 7 we are roughly 16,000 below median. so starting abt three weeks ago GMAC home mort starting calling and saying we were behind on mort. payment and I would just say they have wrong person we never had a loan with them for house. Now today at meeting attny tells me that house is still in our name because w the company we had house with sold loan to gmac who has not started the process of forclosure LOL is what i did then proceeded to say he is filing a motion against both companies for first sending us and him a letter stating the house sold and no def bal second for gmac calling us when they are not allowed to. He and his paralegal have called them and sent them copies of BK filing. Then proceded to say he is going to try for a hardship discharge of our 13 before he proceeds with the convert to 7 he said reason why is all our secure debt is paid in full already and the creditors left owing are all more then 6 yrs old and that our income has decreased but our medical payments have increased we now have a 35% copay for all medical and 75% copay for meds. Anyone had luck with a hardship discharge? I would prefer a convert but he says i would then have two bk's on record and he would prefer this way.

[lrprn]

Sorry to hear you are having troubles with the mortgage companies' exchange after your house was sold, sandhill. I think some mortgage companies are in serious financial trouble now that the subprime losses are starting to spill over into the prime market and the housing boom market is drying up.

Your lawyer sounds pretty savvy to me. If you don't feel comfortable, ask him to explain the consequences of having 2 bks on your record vs a hardship discharge so you understand why his way is better. Ultimately it's YOUR bankruptcy.

[sandhall]

Thanks I did call this am and he responded we are doing this way because a hardship gives you a quick end converting he said would be a 4 month wait. also said by starting with a hardship then it leaves the converting as a option if the hardship is denied.Abt the house very hard we gave keys over in Jan 07 to the company that we had our mortage with then today attorney tells me that another company bought it 7 weeks after our forclosure or the sell at court house which he states should have removed it from our name. Then in June it was bought again by gmac which is who is hounding us he is writing sanction papers up to deliever to the court he states that since jan they have sold house 2 times but each time it leaving it in our name he also says the org mortage company has a history of doing this so I will let him handle it. But like I told him I would have stayed in the house if I knew 8 months down the road the forclosure wasn't never started. I could have saved alot of money. Luckily I kept the org paper that I signed from mortage company telling me house sold on court steps which now I see was a lie.

[lrprn]

Glad that your lawyer was able to explain things so well and you're comfortable with your lawyer's advice, sandhall! Sounds like some shenanigans are going on inside the mortgage lenders' circle....hope your lawyer can smoke them out and get you out of the middle very soon.

I feel your pain about knowing now you could have stayed in the house payment-free for months and saved up a bundle of cash - sheesh!