341 Monday and ? about relief of stay

[treadingwater]

Hi all,

Nervously awaiting our 341 Monday at 11:00. We want to keep our house but we haven't paid the past two payments b/c we are negotiating via another lawyer to modify the mortgage. The bank called our bk lawyers office on Friday and said they plan to file Motion for Relief of Stay. Will the trustee ask us about this at the hearing? What should we tell them. My bk lawyers office was closed for a "staff meeting" on Friday, so I'm a bit frantic. We really want to keep our house and the atty. negotiating thinks they can get us a more affordable mortgage (it was a construction loan originally). Any help is appreciated.

[lrprn]

When you filed Ch 7, were your mortgage payments up-to-date on your filing day? If no, was your bk lawyer aware that you were in arrears on the mortgage when you filed?

The reason I'm asking is that to keep an asset when you file Ch 7, you can't be arrears when you file. Since your lender is stating they intend to lift the stay to repossess your house, I'd say your second lawyer's negotiations to refinance your loan aren't going too well.

You are at real risk of losing your home here. Did your 'loan renegotiation' lawyer tell you to not make your mortgage payments? Does the 'loan renegotiation' lawyer know you filed bankruptcy?

Contact both of your lawyers immediately to update them on this situation and find out what can be done to sort out this mess. Keep us posted - we'll help you sort things out as best we can.

[treadingwater]

We were about 20 days late on our Sept. payment. (filed 9/25, payment due 9/1) Our BK atty is the one who referred us to the other atty. The atty. negotiating the mortgage told us not to pay Sep and Oct. I just don't know what to say to the trustee tomorrow if we are asked about our house.

[AngelinaCat]

If asked, say that you are wanting to keep the house and are trying to make arrangments through your BK attorney and his referral.

Good luck to you.