Motion For Relief From Stay? Help!

[NotEvenADime]

We filed for Chapter 7...had the 341 meeting and all went well. Today my attorney calls and said that Wells Fargo just sent them a letter to file for a Motion for Relief from Stay of the 2nd mortgage because we are behind 2 months. We got behind because a year ago Wells took a payment out of an account that was closed even though we gave them the new account information...since then we have never been able to catch up.
Our 1st mortgage is with Wells too and have never been late.
A hearing is schedule for Aug. 21st.
What can we do? Will we lose the house?

[AngelinaCatHub]

Usually from what I have heard here, they need this to repo. I wish I could help more but you could fight it with an argument of additional time to make up the payment. 'Hub

[NotEvenADime]

Actually now we are only 1 month behind! They can still do this?

[BnkrptcyLwyr]

In a chapter 7 consumer case, the automatic stay (ultimately) is of little value. The stay ends automatically when the case is closed. Since cases last usually a little over four months, they don't last long. Furthermore, no stay protects you forever if you are not making payments (at some point, if you aren't making payments, the lender will probably seek to have the stay lifted).

The thing is, make your payments, right now, that's what the banks really want.

Also, at this point, if you're behind on your payments, I probably would not want to sign a reaffirmation agreement.

[TEW]

I expect he same thing any day now. We timed the filing so they may not have time to start foreclosure before the 341 meeting.

[NotEvenADime]

But we don't want to foreclose...we live on the land that my Grandfather farmed....my parents and both sister also live here...how do we get the hearing to go in our favor?

[HHM]

Short answer, you either get caught up or lose the house.

Conceivably, you could mount a defense to the foreclosure if it occurs in state court based on the facts you presented, but in the BK context, it is pay, or else.

[NotEvenADime]

Do we have to be caught up before the hearing next week?

[NotEvenADime]

Any more help would be greatly appreciated!

[HHM]

You need to be "prepared" to catch up by the hearing. At the hearing, you will need to inform the judge that you have the money to get caught-up, give him a timeline, and ask for the judge to issue an Adequate Protection Order in favor of the Lender.

An APO is an order that allows the lender to automatically lift the automatic stay in the event of a future default.