BK7 and Mortgage Payment

[jacksjean]

Can someone please explain to me in layman's terms why my attorney won't file my BK7 until I am current on my mortgage payment? ...I forgot to ask her last month when we last spoke. I am 31 days late (paid only $300 of $1500 payment for August and nothing for September yet). Applied with Ocwen for two loan mods (first one - Hamp - denied due to 31% threshold and second in-house mod approved but at $400 more per month!) I refused the second mod but my online statement shows I approved it....My plan is to keep the house as the rent for comparable listings is about $1300/month without tax benefits. Plus I'd need to come up with at least $4500 to get in (first/last/deposit/animals). I still owe my attorney $1300 but I can't pay her because I'm trying to come up with mortgage arrears. So explain to me again, why I need to be current on my mortgage before I file? It's not correlating...

[nomoneynomore]

If I remember correctly they won't allow you to retain the house if you file & it's not current on payments.

[SMinGA]

If you file when behind, the mortgage co can get the stay lifted. Atty is working in your best interest.

[newbie2]

Can someone please explain to me in layman's terms why my attorney won't file my BK7 until I am current on my mortgage payment? ...I forgot to ask her last month when we last spoke. I am 31 days late (paid only $300 of $1500 payment for August and nothing for September yet). Applied with Ocwen for two loan mods (first one - Hamp - denied due to 31% threshold and second in-house mod approved but at $400 more per month!) I refused the second mod but my online statement shows I approved it....My plan is to keep the house as the rent for comparable listings is about $1300/month without tax benefits. Plus I'd need to come up with at least $4500 to get in (first/last/deposit/animals). I still owe my attorney $1300 but I can't pay her because I'm trying to come up with mortgage arrears. So explain to me again, why I need to be current on my mortgage before I file? It's not correlating...

If you file for a Chapter 13 any overdue payments (arrears) are built in to the plan payments. A Chapter 7 doesn't offer the lender a payment plan, therefore, they can file for a relief from stay if you are not current with your payments and you can't protect your home from foreclosure.

[drowning123]

I filed when I was behind. Oh well. Surrendering the house anyway.