Mortgage Assistance Legislation

[workinghard]

Does anyone know how the housing-mortgage relief bill can possibly assist persons already in a chapter 13?

Example: House went into foreclosure so filed a 13 to stave off foreclosure. Paying arrears in the 13 - will this bill help to get a re-fi? Owe more than the value of the home.

[r.m]

Maybe, maybe not... however, nothing's going to happen until Oct. 1st.

And, the program has so many flaws... it's really a bailout for the lenders... only the worst loans with the highest loss severity will likely be approved for this process.

Like most of the other "initiatives" that have been launced, I expect this to fall far short of expectations.

I haven't read the whole thing yet, but I've posted a number of observations at my blog: http://foreclosureresolutioncenter.com/blog

[If the link's not allowed, I'll remove it]

Anyway...

Did you know that you may be able to obtain a workout while you're in a Chapter 13?

Oh yeah, your attorney probably never told you.

[BKParalegal]

Currently some Trustees around the country are modifying the interest rate on a mortgage during the life of the plan. I have also been able to add post-petition arrears into a plan with no fight(basically a workout). There is a Bankruptcy lobby group that is trying to introduce legislation allowing all trustees(chapter 13) to modify the loan more easily.

Something has to give, I am dumping 2,3,4 houses a BK in Northern California, and in Middle District Florida, it will take 5 to 10 years to recover any equity. Now is the time to by a cheap condo on the beach, they are giving them away with the purchase of Plasma Screen TV in all Best Buys down there(that was a joke)

[workinghard]

Maybe, maybe not... however, nothing's going to happen until Oct. 1st.

And, the program has so many flaws... it's really a bailout for the lenders... only the worst loans with the highest loss severity will likely be approved for this process.

Like most of the other "initiatives" that have been launced, I expect this to fall far short of expectations.

I haven't read the whole thing yet, but I've posted a number of observations at my blog: http://foreclosureresolutioncenter.com/blog

[If the link's not allowed, I'll remove it]

Anyway...

Did you know that you may be able to obtain a workout while you're in a Chapter 13?

Oh yeah, your attorney probably never told you.

No, I did not know about a workout while in a 13. My lawyer said I can re-fi after one year IF I paid my mortgage and trustee on time. But it's been a rough go just to stay under the radar. I will visit your blog or please tell me more here Thanks!

[workinghard]

Currently some Trustees around the country are modifying the interest rate on a mortgage during the life of the plan. I have also been able to add post-petition arrears into a plan with no fight(basically a workout). There is a Bankruptcy lobby group that is trying to introduce legislation allowing all trustees(chapter 13) to modify the loan more easily.

Something has to give, I am dumping 2,3,4 houses a BK in Northern California, and in Middle District Florida, it will take 5 to 10 years to recover any equity. Now is the time to by a cheap condo on the beach, they are giving them away with the purchase of Plasma Screen TV in all Best Buys down there(that was a joke)

Doyou have any information on this lobby group? My rate is still adjusting while I'm in the 13 - and I have two loand one is a home equity that adjusts monthly. So far with the lower rates its been ok but you know what if they go back up? What is funny when I filed they ADDED interest to my car note that was 0.0% to over 10% - now I didn't get that at all...how does it make sense to add interest to a debt, well I was told it was argued and lost, did my own research too and they are allowed to do that. Go figure!

[needingsomehelp]

We originally filed Chapter 13 and were in an adjustable rate mortgage. Unfortunately in our state the trustee doesn't modify (as I understood it, that are not allowed to). If the trustee had been able to modify we would still be in our home, however that is not the case. We converted to a 7, found a new place (we are actually very happy here, despite our resistance), and walked away from our home.
It would be wonderful, given the current mortgage crisis if Trustees could modify, and help people retain their houses.
Good luck to you, I hope it all works out!!!

[r.m]

We originally filed Chapter 13 and were in an adjustable rate mortgage. Unfortunately in our state the trustee doesn't modify (as I understood it, that are not allowed to).

Okay, so... I'm only about 3 months late in responding here.

We've completed a number of mods while a borrower was in a Chapter 13 plan for unsecured debts.

Because a 13 plan is essantially a re-payment plan (albeit a VERY LONG one), your mortgage payments go UP, not down.

And currently, a 13 plan does nothing to help with an adjustable-rate note. If you're due for a rate re-set while in a 13 plan, then be prepared to adjust your plan payments upward to accommodate your new (higher) mortgage payment.

Anyway, this news does little for you, 'cause you've already moved out.

I'm a big believer that life works out for the best in the end, and it sounds like that's true for you in this case.

[r.m]

[QUOTE=workinghard;182228]My rate is still adjusting while I'm in the 13 - and I have two loand one is a home equity that adjusts monthly. So far with the lower rates its been ok but you know what if they go back up? [QUOTE]

If rates go up, you'll have to adjust your plan payments to reflect the increased payments.

You *can* get these mortgages out of your 13 plan and renegotiate the terms.

[QUOTE=workinghard;182228]My lawyer said I can re-fi after one year IF I paid my mortgage and trustee on time.[QUOTE]

This would be a complete waste of time and money for you.

Go find out what your origination costs and fees would be, adding quite a bit of expense. And, while you may be able to get a fixed rate, it may end up being higher than what you have now.

In today's environment, the way to go is to get these modified, change the terms and lock it up now.