??? about forclosure in BK?

[avery]

Ok this is difficult but I will start from the beginning. We have a 1994 mobile home on 1/2 acre. We got 2 months behind in april and was told to pay 560.00 to catch us totally up. We paid that the first of May. We didnt make the May payment on time and on May 17th we got a letter saying we owed 40.00 stupid us thought it was a mistake and didnt pay it. In June we got a forclosure letter. I called and was redirected to a lawyer in our state. The loan is thru Regions. I called and have been waiting 3 wks on reinstatement figures. We went to see a lawyer last wk and he said if we could we needed to get this taken care of but if not we could just put it in the chapt. 13 bk. We owe right around 16000.00 on the loan. We are set up on a balloon note and we refinance every three yrs. We are soposed to refinance in Sept or October. Today I talked to the forclosure lawyer and he said our reinstatment figures are 2535.00 and its due by the 24th of July. I think this is outrageous considering our house payment is only 205.00. Do you think Regions will let us refinance while we are in a bk. Were gonna have to let the 2535.00 go into arreages. Also we were thinking of maybe putting the house in the bk and having it paid for within the 36mos does this sound doable? It would make the payments about 444.00 before interest. I hope I have given enough info. Any help will be greatly appreciated.
Avery

[SinkingFast]

The lawyer you talked to,....... If he/she is the Trustee of the Sale representing Regions, I'm surprised he/she even discussed it with you.

The $2535 can be any number of things in that figure. Could be a payment, plus lates, and penalties, and fees, and extra interest, AND that attny you talked to.

We went into Foreclosure with 5-6 missed payments. The total that got added on top of our principal balance was over $8K. Interest, penalties, late fees, and the Law Firm hired to be the Trustee overseeing the Foreclosure.

I've never heard of anyone paying extra toward the principal balance to pay off a mortgage early thru Ch 13. Not saying it can't be done. Just never heard of it. The Trustee decides who get's paid what so I'm not entirely sure an early pay-off would be doable.

That would definitely be a question to ask an attny. Consults are generally free. You might call and schedule a couple of appts and chat with a few attnys. You don't want to put this off too long if your house is already in the Foreclosure process.

Do you have any other debt that you'd be filing against?? Or just the house??

If you don't have any other debt you'd be including, maybe the thing you need is a mortgage negotiator instead of filing BK. A Mortgage Negotiator could chat with Regions and maybe work out a repayment plan that will catch you up and stay within your budget.

[avery]

Thank you

Thank you SF I dont think I made myself completely clear its all muddled in my brain with the stress and everything. WHen I called Regions they said my account had been turned over to a lawyer in my state for the sale of property. WHen I called and talked to the mitigation department he told me he would send off for the reinstatment figures and it would take about a wk. I called several times and it was nearly three wks before they had the figures which was today. We talked to a BK lawyer and he said we could just put it in the bk for the arreages and make the payment that way but his concern was that we had to refinance in sept or Oct. I guess my question is do you think Regions will let us refinance it then? And if they do instead of being put back on a balloon note for 9yrs we were thinking about seeing if we can be put on a straight note for 3 or 5 yrs. WIth 3 yrs our payment would only be 450.00. THe lawyer talked like we could put it in the bk plan and pay it that way. No we have numerous cc and medical debt so we are gonna have to file either way the forclosure just speeded it up for us. I cant believe 40.00 has turned into 2535.00. I hope this makes more sense now LOL!
Avery

[SinkingFast]

Don't worry about being confused. It's all a bit confusing for everyone at the start.

A Reinstatement figure is calculated different. But they still include lates, and such in there.

Gosh,......... I don't know what to tell you about the refi. People here have tried it, and weren't successful.

Plus, you can't take on any new debt in a Ch 13 payment plan UNTIL you've been in the plan a year, AND you have the permission of the Trustee in advance. And at that, the only debt you're allowed to incur while in a Ch 13 is a mortgage and/or auto loan. No new CC's. No new LOC's. Nothing else.

What State?? Any equity in the house?? Cars or other assets?? How much do you make?? How many people in the family??

I know it sounds nosey, but attnys tend to lead you the direction they think you want to go. You talk to an attny and he/she knows you want to keep your home, so of course, they're gonna say "File Ch 13." Ch 13 is the sure fired way for you to go and keep your house. But, you may in fact, qualify to file Ch 7 and still keep your house, and everything else for that matter.

Attnys will push for a Ch 13 because they make more money off of you. 2 ways. The fee is higher in the first filing. The Ch 13 filing. AND, many Ch 13 plans fail. So you go back to the attny that filed your Ch 13 for you to convert you over to a Ch 7 when you cannot make the plan payments.

If you initially qualify for a Ch 7, you'll be tied up 90-120 days or so. Regions will be too under the Automatic Stay protection that comes with filing BK. That brings you to beyond your September refi time. There are Mortgage Lenders out there that will refinance you the next day out of BK. You could keep your home and you get a new loan. Rate won't be great, but you could refi in a year or so and get a better rate. Plus you'd have no other debt.

The catch to go with a Ch 7 is the arrears on your Mortgage note. You have to be current on the Mortgage to go Ch 7 and keep the house.

[avery]

Well basically thats what this refinance will be. A balloon payment will be do in sept or oct for the remaining balance of our account. We have always refinanced every three yrs. THe loan officer did it this way to keep our payments down. My state is Arkansas and I cant file 7 cause it hasnt been 8 yrs since we filed before. The house is probally worth 20.000 and we owe 16000 on it before the 2535.00 was added on today. We have a car and truck were gonna let the car go back in the bk its upside down. The truck we just purchased it so there isnt any equity in it yet. No other assets. Family of four and we make about 25000 a yr. Thank you for at least trying to help me I hope I answered all your questions if ya have anymore just let me know.
Thanks again.
Avery