Will filing bankruptcy stop foreclosure?

Will filing bankruptcy stop foreclosure?Unfortunately, many homeowners simply don’t know what to do when they are in foreclosure. I get many emails asking me, “Will filing bankruptcy stop foreclosure?”

Well, yes and no!

Many homeowners will file for Chapter 13 specifically to stop their sale date. Only to find out later, that their mortgage is not included and now they may have both on their credit reports. In most cases, when you file BK, an automatic stay is granted prohibiting your creditors from attempting to collect or contact you.

However, the automatic stay and the stopping of the foreclosure is ONLY temporary.

More often than not, a creditor such as your lender can get around the automatic stay by asking the courts to remove (“lift”) the stay because it is not legally binded to the proceedings.

In many cases a homeowner will shell out $2,000-$3,000 to file an emergency BK the day before their property is to be sold at the notice of trustee sale. Often there is no equity in the home and there is no way for the borrower to come up with the full amount owed to their lender and in some cases, the homeowner is jobless.

This is a really common scenario. The banks know this and their lawyers understand this like the backs of their hands. And like clock work, shortly after you file for bankruptcy, the lender will ask for permission to proceed with the foreclosure and quite often (since it is the law), the foreclosure proceeds.

Now the person is stuck with two HUGE black marks on their credit and the are probably mentally depressed?

What you need to understand is that if you have a second mortgage then there are different rules that may apply and help you in your mission. More on that at the end of this post. But if you just have a first mortgage and you decide to file, if is is before the foreclosure sale date, a bankruptcy will stop the foreclosure sale from taking place.

However, under a Chapter 13 plan, you will be required to make regular monthly payments on your mortgage once the automatic stay is lifted. You will then be given a reasonable period of time to bring your mortgage payments up to date to save your property.

Obviously this is a temporary fix and if you have no way of paying your mortgage or it will be very difficult, then maybe this is not an option for you to choose. Bankruptcy may be the best solution for a lot of extreme financial hardships.

 However, it should be used as a last resort due to its limiting protections for homeowners with a first mortgage and the long lasting consequences to your credit.

For more information on foreclosures, consult with an attorney experienced in bankruptcy law.

If you own a home with more than one mortgage, you may be able to completely remove or “avoid” the second and subsequent junior mortgages from your home and county records, thus leaving only the first original mortgage!

To qualify for this defense, the court will generally require objective evidence that the home is appraised for less than the value of the initial mortgage, which can be obtained through a county property appraisal or through a third party certified appraisal that is accepted by the court.

In an environment where home prices in most markets have fallen at least 30%-50%, many borrowers may qualify.

If the courts remove this 2nd mortgage, this is known as “stripping” the lien, “cram down” or “strip down,” which can also occur if the loan is secured by other collateral that is part of the filing or if the home is not your principal residence, or even if the payment structure on the 2nd mortgage falls heavily during the bankruptcy filing itself.

Ultimately, working with a qualified tax, real estate attorney and or experienced real estate bankruptcy lawyer will help you present your case to the Federal bankruptcy court, so it’s important to get qualified legal advice in advance of any filings.

Please read the many more blog posts below on cram downs and second mortgages!!

Would you like a free consultation with experienced mortgage bankruptcy attorneys?

If you are in the state of California, please call the Law Offices of Fransen & Molinaro at (888)756-2652 or visit their website at www.ModifyLoan.net

If you are in the state of New York, please call the The Radow Law Group, P.C. at (516) 338-7800 or visit their website at www.NewYorkLoanLaw.com

If you are in the state of Michigan, please call The Law Offices of Shannon Shaya, P.C. at (248) 789-5551 or visit their website at www.MichiganLoanModification.net

LoanWorkout.org is searching for attorneys who would like to be included on our blogs and advertisements to help homeowners with bankruptcy, loan modifications and foreclosure defense. Please contact moe at moeseo.com or call 888-516-1116 for more information.
 
LEGAL DISCLAIMER – The comments, posts, threads and material on this websites are NOT to be taken as legal advice and we highly recommend that anyone facing foreclosure should seek the counsel of an attorney and or an accountant. ALWAYS obtain a second and third opinion on your particular situation from a trusted source.


Posted in Bankruptcy News | 15 Comments

15 Responses to “Will filing bankruptcy stop foreclosure?”

  1. Paul Watts says:

    I need help, I cannot get Indy Mac to call or help me modify and now I am behind on my loan. I need to speak with deutsche bank they are the investor but cannot find who to speak with. Please email me…I have only one week before I am 4 months past due.

  2. Larry says:

    I just got turned down for a loan mod., (Indymac) they stated gross income isn’t high enouhgh to help me on a loan mod. What do I do now? I lost my job and becuase of our high unemployment rate am not finding another.

  3. Bobbie says:

    Our loan is with National City (freddymac)We had been processing for
    Making Home Afforable Plan got letter 2wks ago that we didnt meet their
    qualifications. It then went to the lost mitigation.dept who i just got a letter from saying our income was to low. We already had a sale date once that did get pulled when papers were processing and i know any day we will be hit with new sale date.We have been messing with these people since Jan.I had called before we were ever behind to see if we could do some interest payments for abit as our trucking business was really starting to slow down
    we were told we had to get behind first and then put in for a hardship so after lost paperwork 2 or 3 times they finally were processing. And then we were served papers for foreclosure we were never told that this would happen while waiting for them to do our paperwork. I caleed these people at least 3 times a week i was stuned. Oh and did I mention my husband had to then be off work for a shoulder surgrey. In the spring this workout hardship was then named the MHA plan but i think national c makes up their own rules.
    I have sent them year to dates 3 different times and twice they put in wrong fig. I dont know this time if they looked at right fig. they only say you didnt
    qualify. Ive asked for reinstate amounts several times but was always told i didnt want to do that as it wouldnt allow us to do the programs but since that didnt happen i think it is a money scam the legal fees the last time i asked were almost 6 thous. Is there any help out there i put up a hell of a fight but
    im not sure i can do this much more. Sorry for any type O im also sick of writing these days. HELP PLEASE

  4. [...] is not protected in bankruptcy. However, other debt are and they may qualify based on that. Will filing bankruptcy stop foreclosure? | LoanWorkout.org [...]

  5. Pauline says:

    We have been in review for over 90 days we make contact with Bank of America once a week . we were told NOT to make any payments while we are being reviewed and were served foreclosure papers. We would NEVER have not made some kind of payment if we knew they would foreclose on us. Called today 21/8/09 to see if our modification was approved we were suppose to find out by 12/23/09 and we were told that we are missing paper work!!!! every other time we called NOT ONCE! were we told they needed any other info. Just that it was in review. We are now 6 months behind on our payment and no payments are being accepted on our loan. I feel that BOA is trying to close on us . They are unethical and are shady in the practices. I am totally lost. Is it to Late? Original loan was with Quicken then Countrywide and now BOA.

  6. Jim says:

    I completely understand what Pauline and her husband are going through. I have been dealing with this stuff since Sept 2008. I have made all of the payments that we were asked to make. We were making the reduced payments instead of the full payments, but now we are being advised that our account is behind and that B of A is trying to accelerate proceedings in regards to foreclosure. We are still trying to fight this thing through, but it is becoming exhausting to deal with. Any ideas?

  7. Julee says:

    I need an answer QUICK!!!
    We are a 30something couple raising two preschool-aged children in “Small Town U.S.A.” Our lender is a small, locally owned bank that over the years has had a pretty good reputation for helping out the “little man”. But, we have been misled by them on a few different occasions…thus, the reason for my desperate attempt at a QUICK answer!
    First of all, our mortgage is comparable to the price of some new automobiles, rather SMALL if compared to the national average. We bought this place with big ideas and plans and now seems to be nothing more than a big HEADACHE! Nevertheless, it is HOME and we are not ready to give up on those “big ideas” yet…
    Our first mortgage was financed for ten years at an adjustable rate of 6.75%. Roughly half way through, we took out a second mortgage for a roof and other major improvements. This 2nd mortgage was financed for a term of 15 years at a rate of 13.5% due to the fact that our lender encouraged us to file Bankruptcy only 3 years earlier! We had reconsidered fixing this “money pit” up and were in high hopes of dozing it down and replacing it with a new modular or double wide mobile home. Our then lender, who has since “retired”, ASSURED us that if we could only file BK on several MEDICAL BILLS, (NOT EVEN CREDIT CARD DEPT!!!_NONE,AS A MATTER OF FACT!) that that would enable us to qualify for this new IDEA we were pondering. He even went so far as to send us on a search for this new home and to keep it in a certain purchase amount. 75K-92K!!! We looked high and low and all the while kept in touch with him about the matter. Finally found our dream house that fell well within his range…the DAY before we were scheduled to be in Bankruptcy court, I called him, once again JUST TO BE SURE it was the right path. Again, he assured me that, “things looked great!” Two weeks after our court appearance, the manufactured home dealer is ring our phone off the hook wondering why they had not yet been contacted by our bank to “proceed” in the process of buying our dream home. I attempted to reach my lender every day for a solid week. Each time I called, he was either with another “client” or off that day and they promised time and again to have him return my call A.S.A.P. Another week passed and I was sweating bullets. When I finally nailed him down all he could say to me was, quote; “We’re just not going to be able to help you Julee. The BANKRUPTCY just threw a wrench into things.” I was so overcome by emotions that I couldn’t even respond. THE BANKRUPTCY THAT HE SO ADAMANTLY ADVISED!!! Pure BETRAYAL was all we felt. A whole year of our lives wrapped up in the search for the right price range and all the $$$$ spent on our unnecessary BK that has since been completely detrimental to our credit rating. We totally trusted this man and his advice and he, for lack of better words, SCREWED US OVER! Which FINALLY brings me to my question…
    My husband lost his job last year and drew unemployment for 9 months. During this time we were unable to afford our high 1st and 2nd mortgage payments and could only make partial payments. Late fees piled up and we got further and further behind. At one point the bank sent out the first notice by certified mail that we needed to bring that passed due amount current or they would proceed with beginning foreclosure. Panic set in and we ended up having to borrow from my in-laws to save our home. The bank agreed to accept half of the amount that was passed due and even after paying that we were drowning. My husband got called for a job out of the country and it looked as if our luck was turning around.
    I paid the bank HALF of every paycheck I received attempting to eventually get caught up. It was looking better. Then, my husband got sick and was flown back to the states unexpectedly. Didn’t take long to end up right back in the same situation. He was off work for almost 3 months with NO income this time. Again, we received the letter. Which brings us current. Unable to borrow from dear ol’ dad this time, we hung our heads in shame and FEARFULLY went to the bank in hopes of combining our 1st and 2nd mortgages, extending the years of our loans to at least 20, if not 30, in an attempt to lower our payments and be brought “current”.
    In the past month of this ordeal, I was first told that our bank does not finance ANYTHING beyond 20 years (news to me) and that they would NOT extend ours beyond 15 no matter what. Our only hope was to DOUBLE our payments for a period of 6 months at which time the board would review our case and if we had been on time (not a day late) for those 6 months, they would CONSIDER bringing the balance current.
    This was their only offer. When we told them that it was almost impossible to double the payments, they asked what we were willing to agree to. When we told them our amount and even made a payment, they informed us that they were not even sure that the board would approve it! That they had a meeting scheduled for the next day and they would call us back and “let us know if we could come up with a work-out plan.”
    A whole week went by with no response. Then, upon returning home one afternoon, there’s a message on our answering machine from an appraiser requesting that we call her back to schedule an appointment that the BANK had ordered.
    Being as leery as I am with them, I looked at my husband and said,”Are they doing this to benefit US or are they doing this to see if this place is worth REPOSSESSING???!!!
    This lady is coming Tuesday morning to do a full appraisal. I am so worried that the bank has bad intentions.
    My question is, DO BANKS EVER ORDER APPRAISALS FOR THEIR BENEFIT IN FORECLOSURE????? Your response will be greatly appreciated! Please forgive me for such a long sob-story! Thank you for your time, Julee

  8. Moe Bedard says:

    OK Jullee, take a deeeeeeeep breathe,

    This is normal for some servicers to do this when there is a question about current equity in the property. They want to know if you owe less or more than the home is currently worth. You should seek assistance from a non profit like http://www.NACA.com or http://www.995hope.org 888-995-HOPE. Keep fighting and try joining my forum at http://www.LoanSafe.org/forum with other homeowners just like you.

    Take care!!!

  9. Greg Harry says:

    Moe, our 1st (& only) mortgage loan is through IndyMac. We have been here about 15 years & raised both children in This House – Our Home.

    I was laid off from my job at the end of Feb. In trying to be proactive, my wife & I called IndyMac in the 2nd week in March to talk to them about my jobless predicament & to see if we could qualify for a mortgage loan modification? We were told NO, because WE WERE CURRENT in our payments – nothing could be done yet.

    My unemployment check is only about 1/4 as much as my old salary so things are extremely tight & so we missed the March payment.

    We called 10 days later & were told the paper work was still ‘in process’. In early April we call again & were told no decision has been made – 10 days later on another call we were told ‘certain data was missing’ & the application needed additional information. So in supplying the missing data we simply refilled out the entire loan modification Application AGAIN, signed it umpteen times & faxed the updated application THE NEXT MORNING. We verified they got the fax & were told to call back in 10 days. [Always 10 days!] So we kept calling every 10 days & are told the same lines everytime – no decision yet. No decision yet.

    We miss the April payment.

    We continue calling every 10 days. Last week when we called we hear this – ‘There is no record of IndyMac receiving a loan modification application from us!” [expletives are being self-deleted now] And no the lady nor her supervisor were kidding. SO WE FILL OUT OUR THIRD APPLICATION (reprinting & signing EVERYTHING noted in the application document plus a few extras & FAXED IT ALL AGAIN the very next day. THREE TIMES we’ve filled this same application out! Now A FULL 2 months after our initial loan-mod application… [expletives are again being self-deleted] & still nothing resembling a loan-modification DECISION has been reached by IndyMac on our behalf. By now it is apparent we have to call every 2-3 days, so we do.

    Last week we received a certified letter stating that unless the loan is caught up by the end of MAY (92 days) IndyMac will have no choice but to call the loan in full & begin foreclosure proceedings. I can scrape together a payment (& maybe 1/2 of another) but I cannot come up with the amount we are behind on without cutting off the electricity, water, & going on a starvation diet! THE WAY THE DOCUMENT READS IS THAT IndyMac DOES NOT have to accept PARTIAL PAYMENTS & they can still ‘Call the Loan at Their Discretion’. I could get no one at IndyMac to give me any assurance that if I send less than the amount the letter tenders (1 monthly payment) that I would still be deemed to be making ‘partial payments’ & therefore the loan can be called at their discretion. [warm fuzzies]

    WE HAVE TO HAVE A LOAN MODIFICATION & IndyMac knows this yet they are dragging their feet on this. IndyMac claims it has no interest in foreclosing but their actions/inactions tell a very different story! We will make a full month payment on the 29th of May in the hopes of forestalling this sorry episode by another 30-days so that maybe, MAYBE IndyMac Will Finally Give US An Answer on Modifying Our Loan?!?!

    Am I just being cynical in believing IndyMac has no intentions of helping us but simply wants as much of our money as is possible before they turn us down & call the loan regardless of our circumstances?

    Is there hope for us or am I just another poor unemployed schmuck & another family [mine] is going to fall through the proverbial cracks in the system? Of course being in my mid-50′s I’m not getting a whole lot of callbacks on literally hundreds of resumes emailed & mailed & handed out at job fairs so this unemployment thing may persist far longer than I want it to… but of course I digress.

    Thank you for any help & hope that you or others can provide & May God Bless You for what you are doing to help others in similar circumstances! Greg H., Alabama

  10. ruthanntraci says:

    Pauline, my story is very much like yours, asked for help first surgery in2007, fall2008, ssdi no income 2009, working with hope alliance, credit org. april2oo8pending,pending, owne more than one home all of which have 1031nheritance on all, 20 down, hoping to get personal residence modified, all homes are upside down, 2 homes tenants lost jobs, now no job or income to cover, move into car, rent home, keep garage, waiting for modification, calling every 3rd day, 4/5 time sending in paperwork, quit making payments July on one sept on both loans, rent rooms sept.09, sticker on door 10/14/09 30day, 10/31/09 90days, modification is pending, resubmit 12/02/09 pending review, receive sale date 1/15/10,pushed back, pending sale date give 2/14/10 put up short sale to avoid foreclosure on record, what a mess, sale signs up room mates leave, take off short sale status, pending modification once again, actually talked to someone nice at B of America, waiting for modification package, been 3 weeks, called, sale date was still set once again for this Friday?waiting for modification package. Asked for adjustment on second morgage of rental home, no can do, I am a single self supporting female, raised both children alone since age 19, had decent income, surgery, fall, loss of job, surgery, loss of income, finally fixed income ssdi, has exhausted all savings, cd, retirement, all of it too keep it going, and now here I sit, complete loss, tried the help with your mortgage, paid 2,000 that got no where, have talked to lawyers, they all want me to file chapter 7, I am to o old to walk away, have spent all retirement, can not rent rooms/with homes pending foreclosure/short sale, Mr. Jerry Brown Att.Gen.tells us not to try the auditors, well where do we go now? Trusting the lender or anyone at this point, I am unable to do so, and that even includes ones that I should be able to count on,,,,,,,,,,,,so,,,,,,,,,this is what I am doing, keeping home neat, touch up painting, yard whatever, paying bills that I can pay, being very conservative in spending, breathe inhale, focus on not getting stressed, inhale, want no more panic attacks or whatever, it is not worth it, feeling like a failure, making stupid mistakes, well hooey, alot of people with alot more experience, even those that have worked with this all of their lives, are in the same situation, no one planned on this, no one expected this, if wall street and the big boss that counseled the lenders, builders, etc; knew prior; well shame on them, will not do anyone any good too slap them upside the head now, they either work with me or they don’t; if the modification isn’t in my best interest; I am too burnt out at this point too easily comply to something stupid. They need to fix the loan so it is workable, if they can’t do that, then we need to take the next step. The most frustrating moment is when you figure out what 31% of income actually comes too; if that had happened I wouldn’t have all of these back payments, late fees, might even have some savings left; but it didn’t happen, so moving right along, here I sit going on 4 weeks waiting for modification packet, it has now been one year in April 2010. I think Bank of America and all of the other company’s that are so understaffed maybe should hire some of us that are unemployed.

  11. Margie Brewer says:

    I don’t know where to begin.
    In 2004 my husband refinanced our home. We at the time had good income. We are now both out of work, he due to brain injury me both retired and suffer from chronic pain. We had a good savings and were doing all the right things then he had his injury and no matter how prepared you are, well you never are. We have a balloon payment due in September of about $235000. and a line of credit for about $140000.. We have been turned down twice for modifying our loan to a payment we can afford. I have been on this property for 65 years and have always paid my bill and taxes. We live on $2000. per month and that is why we can not secure financing. I am not prepared at my age to just give it up. I s there some way for me to secure financing and stay here in my home.
    There is so much pain and suffering in our lives this just adds to it. Feels like I failed.
    Margie

  12. James says:

    GOD DO I KNOW HOW YOU ALL FEEL. WHERE DO I BEGIN……..
    MY WIFE AND I WERE LIVING IN A 2 BEDROOM TOWNHOUSE BACK IN 2004. MY MOTHER HAD A HEARTATTACK AND PASSED AWAY ON OCT 30TH. MY DAD AND SISTER WERE LIVING IN THIER HOME. THEN ONE DAY MY FATHER CALLED MY WIFE AND ASKED HER TO COME OVER TO HIS HOUSE. HE TOLD HER THAT HE WANTED TO GIVE US THIS HOME. ( WHICH IS PAID FOR ) WELL AFTER MOVING THEM OUT AND FIXING UP THE HOUSE WE MOVED IN. ( WHICH WAS GOOD TIMING SEEN AS HOW THE OWNER OF OUR TOWNHOUSE SOLD THE PLACE &^&^). WE WERE IN THE HOUSE ONE DAY WHEN OUR DAUGHTER CALLED US AND SAID THAT THE HOUSE THEY WERE LIVING IN HAD RATS. ( WE COULD NOT LET HER, HER HUSBAND AMD OUR GRANDKIDS STAY THERE) SO WE LET THEM MOVE IN. THEN OUR SON INFORMS US THAT HE IS GETTING MARRIED. WELL WE NEVER DO ANYTHING HALF AZZED. WE WENT AND GOT A $100,000 LOAN. NEEDLESS TO SAY THAT WE ENDED UP OVER PAYING FOR WEDDING THAT WE SHOULDN’T HAVE HAD TO PAY FOR. WHEN WE WENT FOR THE LOAN THE BROKER SAID FOR US TO PAY ON IT FOR A YEAR AND THEN COME BACK IN TO REFI. WE PAID ON IT FOR A YEAR ON TIME EVERY MONTH. OUR FIRST LOAN WAS WITH LITTON WHO SOLD IT TO SOME OTHER COMPANY WHO SOLD IT TO COUNTRYWIDE. WE SCHEDULED AN APPOINTMENT TO DO THE REFI AND GOT TURNED DOWN. OUR PAYMENTS WENT FROM $763 TO $1038. WE WERE HORRIFIED. ON APRIL 1, 2009 MY WIFE HAD A STROKE AND I WAS BESIDE MYSELF. SO I CALLED COUNTRYWIDE TO DO A LOAN MOD. THE GUY SAID THAT WE HAD BEEN APPROVED AND TO WAIT FOR THE PAPERWORK. WELL GUESS WHAT WE NEVER GOT ANY PAPERWORK. I CALLED BACK AND THEY ADVISED ME THAT THE PAPERWORK WOULD BE SENT OUT SOON AND TO BE PATIENT. TWO WEEKS LATER STILL NO PAPERWORK. I CALLED BACK AND THEY SENT ME OVER TO THE WORKOUT DEPT WITHIN COUNTRYWIDE. THEY SAID THAT THEY ARE REFERRING MY CASSE TO THE HOPE PROGRAM AND TO WAIT FOR SOMEONE TO CONTACT US. I SAID OK. A MONTH HAS GONE BY AND NO CONTACT. I CALLED BACK. THEY ADVISED THAT IT IS A LONG PROCESS AND TO BE PATIENT. I FINALLY RECEIVED A PACKAGE IN THE MAIL FROM THE HOPE PROGRAM THROUGH BANK AMERICA. I GUESS OUR LOAN HAD BEEN BOUGHT BY THEM( I DONT KNOW WHEN I NEVER RECEIVED ANYTHING FROM THEM )I FILLED OUT ALL OF THE PAPERWORK AND FAXED BACK ALL OF THE DOCUMENTS THEY REQUESTED. I CALLED THE NUMBER ON THE PACKAGE TO CHECK THE STATUS. THEY SAID IT IS UNDER REVIEW. I WAITED A COUPLE OF DAYS AND CALLED BACK. THEY INFORMED ME THAT I WAS MISSING A UTILITY BILL WITH MY NAME ON IT. I FOUND ONE AND FAXED IT BACK RIGHT AWAY. I WAITED A COUPLE OF DAYS AND CALLED BACK. AGAIN I WAS TOLD NO DECISION HAD BEEN MADE YET. WHICH BRINGS ME TO CURRENT DAY. ON JULY 1, 2010 I GOT A 24 HOUR NOTICE TO BE OUT OF THE HOUSE. I WAS MORTIFIED. I CALLED THE COURTHOUSE AND THEY ADVISED ME THAT THE HOUSE WAS BOUGHT BACK BY BANK AMERICA AND TO CONTACT THEM. I DID. THEY ADVISED THAT THE MODIFICATION WAS REVIEWED ON JUNE 28TH AND NO DECISION HAD BEEN MADE. I SAID WELL I GOT A 24 HOUR NOTICE ON MY DOOR WHAT DO I DO. THEY TRANSFERRED ME TO THE AGENT WHO WAS HANDLING OUR HOUSE. I TALKED TO THE GUY WHO ADVISED ME THAT HE DIDN’T KNOW WHY I GOT THE NOTICE CUZ HE DIDN’T ASKED FOR ONE TO BE ISSUED. HE SAID HE WOULD EMAIL ME A FORM TO SHOW THE SHERIFF IF THEY TRIED TO KICK US OUT. I DIDN’T RECIEVE IT. IT IS NOW THE 4TH OF JULY WEEKEND AND I AM PANICKING THAT I AM GOING TO BE KICKED OUT OF MY HOME ON THE 6TH. WHAT AM I SUPPOSED TO DO NOW. MY WIFE IS HAVING PANIC ATTACKS AND I FEEL LIKE I CAN’T BREATHE.

    SORRY TO BE SO LENGTHY HAD ALOT TO SAY I GUESS. ANY ADVICE? THANKS

  13. John says:

    HI – here is my current situation:

    -Bank of America 1st $412,000
    -Bank of America 2nd $103,000
    -Est. current value $350,000
    -Last payment made 02/2010
    -Applied for HAMP in June 2010
    -Notice of Default filed Aug 8th 2010
    -Oct 5th 2010 – got denied under HAMP due to exessive forebarance
    -Current est income $3,046.00 monthly gross (this is what they used)
    -within 10 days from Oct 5th, my loan will be reviewed for in house modification. A negogiator will be assigned to my case. What do you think I could expect? I do not want to leave my home.

  14. Vikki Kirkham says:

    I need to know where we stand so please help!My family and I moved to AZ from CA we rented a home only to find out that this home is in foreclosure. After spending our money on the move and this home they never did what they said they would do. It was flithy and not fit to live in. One of the rooms have mold and there is no way anyone can use that room without getting sick! We have only been here for one month my brother and I have cleaned,painted,replaced the carpet,repaired ripped screens,taken trash off the yard, and we are still not done!! Yet we were told that because these people filed bankruptcy it stopped the foreclosure which was filed in 2009. Yet we just found out that the mortgage holder is B of A and get this they paid the taxes in April 2011. But because the house is still in the owners name we must pay the rent to them anyways. They set up an account in a bank here in AZ where we pay our rent because they moved to TN. Our lease was for two years 2013. Now if and I am sure the bank will take the home from these people, but where will this leave us? Do we have the right to stay here till our lease is over? After all the hard and expense that we are putting to this home what are our chances that we can stay here? We told to stop paying rent and save our money so we can move, but we were also told since the the home is still there name, they could evict us where is the justice?? My husband just started working again so we just can’t afforded to move.So when will the bankruptcy drop?? Please any advice would be a God sent. Thank you Vikk

  15. Ray says:

    A few years ago my parents (on Social Security) were having a hard time paying their mortgage. They had bad credit and could not refinance again. I had them add me to the deed, then I would be able to refinance the house under my name only and they would pay the mortgage. Then a couple of years later my dad passed away and my mom could not pay the mortgage. I’ve been paying about 70% of the mortgage and my mom the rest. She is elderly and needs to move to California. The house is in Arizona.
    I want to just walk away from the mortgage because to sell it would cost me thousands of dollars. I would have to sell it at loss. I don’t want to be a landlord either. Wouldn’t be able to charge enough to cover mortgage payments. How do I proceed? Just leave and send the keys to the bank? Not interested in a short sale either. Just want out.