Thinking ahead...

[Lesa13]

I just found this site and am very excited by all the support and advice.

I am in chapter 13 (since 9/05), primarily filed to save my home for foreclosure. The arrearages and "attorneys fees" involved with all of my past due payments have been put in the plan, with me being considered "caught up" and paying a regular payment since September.

All is well until I find out my fixed rate apparently just went adjustable (looking at my mortgage stuff, it went adjustable last May but just now actually adjusted) and I will be owing $200 more a month on the mortgage as of 3/1/06. That is a HUGE stretch for me.

My question is - let's say I make the payment in March and April and May - but then miss a payment at some point. What happens to me then? Does that mean the lender will go back and have the stay lifted to proceed with foreclosure if I miss a payment or do I have a "3 strikes and your out" type of thing where I can be late or miss a payment and not be thrown immediately back into foreclosure (like if you were truly a 'regular' person and it normally takes missing 3 payments to cause foreclosure)?

I am very worried about this huge increase in my mortgage and my atty has not been helpful (as of yet, I am going to lean on him in the next week or so) about amending/modifying my plan to take into account the extra $200 a month going out the door.

Any help appreciated! Thanks!

[13inOR]

Lesa-it depends on the lender, but technically they could move to have the stay lifted after just missing one payment.........your attorney then quickly has to jump into action to deal with them and try to get them to accept paying it back over time, but I will warn you, the motion to remove the stay will cost you at least 500 or 600 dollars in the attorneys fees that they can demand up front, even if you successfully keep the stay in place, you will still owe this. I would not advise missing one if I were you, especially with a
not-so-reliable attorney.....not to tell you what to do,,,,just my 2 cents, but take if from some one who knows.... Kelly

[SinkingFast]

Are your mortgage payments in you Ch 13 plan, or just the arrears??

Either way, you can petition the Court to ammend your Ch 13 payment to accomodate the increased mortgage payment. Your attorney has already been paid to continue to provide services like this. There may be a fee involved with the petition. I don't know that part. We haven't gotten that far along yet.

[Lesa13]

Sinking Fast, I also am in Missouri - so I have been reading your tips with interest since they are pertinent to me too.

Just my arrears are in the 13. My understanding (may or may be incorrect, though), was that the arrears went into the 13 and I was "starting fresh" with my payments. Which has been fine, like I said. I am just nervous about what if I can't make a payment with that extra $200? I was thinking, okay I am starting "from scratch" supposedly, so does that mean I can get behind 1 or 2 before the lender files a motion to lift the stay and proceed with foreclosure or do I need to make sure to pay every month, period, no matter what.

Of course, in a perfect world, we would all pay on time, every month, period...I know, I know

[13inOR]

I know what you are saying about starting from scratch, but believe me, dont risk missing a payment post chapter 13! Some lenders can try to lift the stay as soon as ONE DAY after one missed payment. The best thing to do, I think, is try to amend your plan so you can continue to afford them like you have been. Think of it this way,they are forced by law to hold off on foreclosure, but the second they have a chance to get that lifted and collect, most lenders are going to attempt to do just that. Some lenders are worse than others, but since you never know, its a scary risk. Just check into the amended plan so you can afford your mortgage. Kick your attorneys
butt if you have to! : ) Kelly

[SinkingFast]

We have moved to a new state, but we still own our old home in Missouri. Try as we might, we haven't been able to sell it yet.

We kept up the payments on the house thru the end of December. Didn't pay January and haven't payed February either. I am worried about foreclosure too.

When we did the refi a few years ago, the lender would not put my name on the note. I wasn't working and hadn't earned regular income prior to the refi so the loan is in Hubby's name only. I keep telling/advising Hubby that he needs to call the Lender and explain what's going on. The whole story from lost job to found job in different state. Supported 2 households for a year and ran outa money. We are trying to sell the house, but haven't yet. Can they bear with us?? Kind of thing. Hubby won't do it. He thinks that if he does call and tell them our sob story it will push them to move on foreclosure faster than if we say nothing at all. I keep telling him the Lender does not want the house. They do not want the hassle of foreclosure either. They might be willing to work with us for us to get the house sold. That would be cheaper and easier for them in the long run. But Hubby doesn't believe me and he won't call.

Ugh! Men!

[Lesa13]

I keep telling him the Lender does not want the house. They do not want the hassle of foreclosure either. They might be willing to work with us for us to get the house sold. That would be cheaper and easier for them in the long run.

I wonder sometimes if that is really true. You would think it would be in the lenders' best interest to work something out rather than go through the paperwork/hassle of foreclosure, but it sure seems like a lot of these lenders these days are just wanting to throw people out as quickly as possible. I read somewhere that foreclosure rate in 2005 was extremely high compared to the past 2-3 years.

[BassBoy]

I read somewhere that foreclosure rate in 2005 was extremely high compared to the past 2-3 years.

Just in my city alone (which is very small....about 1800 homes), there are 38 foreclosures (our home soon to be included). Wow. That astonishing!

[SinkingFast]

We actually have 2 very serious buyers looking right now. Both have homes to sell so any offers would be contingent. But one of the couples put their house on the market today and was going to work with our Realtor to make an offer. So we shall see.

We are hedging our bets and telling the attny we want to include it in the BK. If we get a good solid offer, we can pull that. If not, we will be protected by the stay from the BK. The attny talked about just going ahead an offering the lender DIL. We said we wanted to be covered from deficiency. He said if they don't agree to that they don't get DIL.

[Minnymouth]

Lesa13,
Are your making your monthlymortgage payments directly to the Trustee for him to dispense? If so, you need to be talking to the Trustee who is handling your Chapter 13 payments.......

If your payments are all thru the Chapter 13 program the mortgage company CANNOT RAISE you payments without the permission of the Trustee..... and often they will not grant it..... especially if it will cause you to default on your Chapter 13 (putting you into payments you can't afford)......

If the arrears is the only thing in your Chapter 13, then you do have a problem and need to discuss this with your attorney....... Kick his butt is you have too.............

Let us know what you find out.....

[Minnymouth]

By the way,

Banks LOVE FORECLOSURES!!!!!

They make the money off you (downpayment and payments/interest) THEN YOU DEFAULT...............
They take it resell it again and start all over making double the money again..............

Yeah, they love foreclosures..............CASH IN THE BANK!!

Just my thoughts,

[FilingOnMyOwn]

By the way,

Banks LOVE FORECLOSURES!!!!!

They make the money off you (downpayment and payments/interest) THEN YOU DEFAULT...............
They take it resell it again and start all over making double the money again..............

Yeah, they love foreclosures..............CASH IN THE BANK!!

Just my thoughts,

Yup. Heres a very sad story and true history of my family. During the great depression, my grandparents defaulted on the mortgage payments of their farm with only a couple payments left. It was repoed. They then later bought it back, and paid it off. So to this day, my family still owns the farm, that was paid for, TWICE.

[time4cake]

We actually have 2 very serious buyers looking right now. Both have homes to sell so any offers would be contingent. But one of the couples put their house on the market today and was going to work with our Realtor to make an offer. So we shall see.

We are hedging our bets and telling the attny we want to include it in the BK. If we get a good solid offer, we can pull that. If not, we will be protected by the stay from the BK. The attny talked about just going ahead an offering the lender DIL. We said we wanted to be covered from deficiency. He said if they don't agree to that they don't get DIL.

Ok, usually in my posts I am talking about my primary residence, but this time I will be refering to my secondary residence. I constructed my 2nd residence in an effort to downsize and sell my primary. Anyway, couldn't sell either. I called and told the bank my sob story, and followed it up with a certified letter. They immediately sold my mortgage on the secondary mortgage market. When I received notice of the new lender I called them to tell them the same story. They said they would not let me speak to the mitigation department until I was 90 days late. After 90 days passed I called, and offered them a deed in lieu of foreclosure. This is where it gets pissy. According to my mortgage they are required to respond to any such offer in 45 days from having received it. On the 43rd day they responded that they were still considering it. The next day I received a letter from their local attorney noting the date and time of the foreclosure auction. I have not heard from them since.

[SinkingFast]

You need to check your State laws about Foreclosure. That seems odd that they would initiate Foreclosure without some sort of notification period prior to setting up the auction.

We've been notified we're in Breach. On March 18th our Lender will pull our file, review it, and determine whether or not to forward it to our investor. We've contacted the Work Out Dept with our SOB story, so the Lender may move us to Forebearance to give us an opportunity to sell before involving the investor.

Once our file goes to our investor, the investor then has to decide if they will Foreclose. At that point, if the investor decides to Foreclose, they have to give us 30 days notice to allow us time to Cure the deficiency. ie, Pay up, or else. Then if we don't, the Investor can sell after they advertise the property for auction for 30 days.

Your whole deal may be perfectly legal, but it really sounds kinda hinky to move so quick. Check MI's laws on Foreclosure. See if they are right. Or if you shoulda gotten more notice.