foreclosure post 13

[atolar]

So, we filed chapter 13 in july 08; thinking I would have a job by now. Well, I don't. so we are 3 months behind mortgage, we got a letter stating the mortgage people are asking for a relief of stay. will they throw out our whole 13 for one person? Or will they just give them the relief and our 13 still be good?

[rrockinggramma]

They will simply foreclose and the deficiency would become unsecured debt. It won't throw out your chapter 13 but it could modify it if arrearages were included in the plan. You should rethink your entire plan with your attorney.

[justbroke]

So, we filed chapter 13 in july 08; thinking I would have a job by now. Well, I don't. so we are 3 months behind mortgage, we got a letter stating the mortgage people are asking for a relief of stay. will they throw out our whole 13 for one person? Or will they just give them the relief and our 13 still be good?

The Relief From Stay is just that creditors move to recover their collateral (your home).

I'm assuming that you're paying your mortgage outside the Plan. If you were paying your mortgage inside the Plan, and missed payments, then your case would be dismissed.

Your Chapter 13 should be okay. Your Plan payments are probably going to change based on the possibility that there will be some money left between your new rent and the old mortgage payment.

[onejeg]

I am in this same situation. I spoke with the Bk dept thru my lender and once the stay is removed at that time they said they can work with me to help keep me in my home. I was freaked out once I got a letter but in order for them to help (loan modification etc) that needs to be removed to help.

[atolar]

thank you! I appreciate. I don't think we are looking to stay in this house. the interest rate was/is horrible, we can rent a bigger house than what we live in. I appreciate everyone's feedback. this is a really hard time for us (especially having four kids!)

God Bless!

[atolar]

ok, so here's the deal (forgot to add it), we have like $5,000 in the 13 and then the rest in an outside plan... so will we still owe the $5,000? after it's foreclosed?

[woeisme]

you still owe the 5K after foreclosure, but it's now an unsecured debt not secured. That's why someone suggested rewritting your plan.,

[atolar]

ok, cool. can they come after us for the difference of what we owe and what they sell it at?

[justbroke]

ok, cool. can they come after us for the difference of what we owe and what they sell it at?

Depedns on your State, but short answer is yes. This is known as a deficiency. This is filed as a general unsecured claim and is paid with the rest of your unsecured credit like credit cards. It will be discharged like all other unsecured credit!