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Loan Modification Chapter 13

Question: What can I expect from foreclosure 1 1/2 year after chapter 13?

I filed chapter 13 1 1/2 years ago and have been doing well, making my payments etc. Now, my ARM has adjusted and the bank refused to grant me a loan modification. I am considering foreclosure and am wondering if the process is different since I am already in a 13. Do I need a lawyer? What can I expect. Will it be quicker than the 9-12 months?

Answer: It won't be much different if you are in the Chapter 13. But you didn't mention if the house is included in the Chapter 13 or not. That may change how the bank will go about the foreclosure, but not by very much.

If the house is not in the Chapter 13 plan, then the bank will just file the foreclosure lawsuit, get a sheriff sale date, and attempt to sell the house to pay back the defaulted mortgage. Check your state's foreclosure laws to find out exactly how long this takes.

But if the house is included in the Chapter 13, then once you begin falling behind on payments, the bank will petition the court to have the mortgage dismissed from the bankruptcy plan. Since you wouldn't be making the payments, this would be pretty easy to accomplish -- the Chapter 13 is designed to give you a chance to make the payments on time through the entire plan. If you fall behind, the creditors can have their debt removed and pursue collections again.

In that case, then the mortgage company would begin pursuing the foreclosure process same as normal. They still have to follow the state foreclosure laws and county rules in order to take your home. Nothing would change any of that.

There is just that one extra step of getting the house removed from the bankruptcy payment plan, if you included the house in the Chapter 13. Otherwise, the bank will have to follow the laws that dictate how the foreclosure process will work. And to know how much time you have and other details, you can search online for your state's foreclosure laws.

Hope that helps.
ForeclosureFish

Chapter 7 and 13 - Bankruptcy Attorney in Orange County

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Mortgage Modification Chapter 13

Question: I have already went though the foreclosure process, and I filed bankruptcy..?

Ok so this is what happened. Back in July of last year my home was to be foreclosed, however I decided to file Chapter 13 bankruptcy and kept my home. I got behind on my mortgage payments again due to medical reasons, and now my home is scheduled for auction on Feb. 10 of this year. I called my attorney today and he stated that we can do a loan modification to keep the home. He stated that I would have to come and fill out the paperwork for the modification. My question is what is a loan modification? How does the process work? Will my payments remain or lower? I know this is a lot of information however I am really confused as to how all this works. Will I be able to keep my home?

Answer: ~~More than likely it would be financed at a lower rate or for more years. Either which would lower you payments. He would have to tell you what would apply in your case, but any type of modification would be done to make the loan more affordable to you.~~

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