Saving Home Chapter 7

Anonymous · ‎08-27-2015

I've seen very good information on this site. Hopefully, someone can give me good advice and direction. I'll be brief. Filed Chpt13 49 months ago. almost made it through. But could no longer make payments. had attorney convert to chapter 7. Meeting of creditors late 4 weeks away. Auto loans were paid off in chpt 13. Will still owe little to IRS. Mortgage is problem. We want to keep house. Payments were current under chapt 13. Attorney told of current status. Thought all was OK just to continue making payments on time. However, mortgage holder changed (my website account) current status to showing $18,000 needed to make current. Notes from mortgage holder shows "premium reversal". I asked my attorney what does this mean, and they're trying to find out whats up. Anyone with some information about what's going on? Will the wife and I lose our house if we can't come up with $18K, although we only thought we'd have to keep current payments up to date. HELP!!!

DaveInAZ · ‎08-28-2015

@Anonymous wrote:
I've seen very good information on this site. Hopefully, someone can give me good advice and direction. I'll be brief. Filed Chpt13 49 months ago. almost made it through. But could no longer make payments. had attorney convert to chapter 7. Meeting of creditors late 4 weeks away. Auto loans were paid off in chpt 13. Will still owe little to IRS. Mortgage is problem. We want to keep house. Payments were current under chapt 13. Attorney told of current status. Thought all was OK just to continue making payments on time. However, mortgage holder changed (my website account) current status to showing $18,000 needed to make current. Notes from mortgage holder shows "premium reversal". I asked my attorney what does this mean, and they're trying to find out whats up. Anyone with some information about what's going on? Will the wife and I lose our house if we can't come up with $18K, although we only thought we'd have to keep current payments up to date. HELP!!!

Sorry, I have no idea what game the mortgage company is trying to play here. You need a very competent attorney to figure out and fight whatever it is they're trying to do.

Anonymous · ‎08-28-2015

Thanks for the input. I will do that. Citafa

DaveInAZ · ‎08-28-2015

Well, as I think about it - since your Ch13 is being converted to Ch7 the lender may be trying to reverse the payments made under the Ch13 plan. But they can't just make those payments disappear, they have to applied somewhere, against principal & interest. But is sounds like the lender is playing very dirty, claiming you owe $18k to be current is manuvering them into being able to foreclose. So it will be well worth the investment to have a good attorney fight this. One thing you should consider is if the house is worth more than the mortgage balance is to sell it.

Anonymous · ‎08-28-2015

Thanks again. Balance on house was apprx. $89K before the mortgage changed all the figures. Now balance showing $93K with $19K to become current. Retail is about $115-120K in this area. Wife and I have homestead exemption in NC amounting to about $70K. So trustee can't seize I don't think. Wife really doesn't want to move and doesn't know about the figures being changed yet. She recently had a stent put in her heart with instructions to avoid a lotta stress. We're in our early 70's and if we end up having to move, not sure what this will do to her. Can our attorney actually file "some kind of paperwork" to stop a foreclosure under these circumstances as far as you know?

DaveInAZ · ‎08-28-2015

Once you converted to Ch7 all your debts received an "automatic stay", preventing them from taking any action to collect those debts, including foreclosure/reposession. The lender has to file a motion asking the judge to lift that stay and your attorny could fight that, but it is highly unlikely a judge would allow any foreclosure actions prior to the creditors meeeing. Your creditors meeting should be very interesting, hopefully the mortgage lender seends someone to explain what the heck they're trying to pull, but even if they don't your attorney can bring this up to the trusstee and ask the turstee to deman an explanation from the mortgge company.

No, I'm sure that in your 70s moving is the last thing you want to do, especially with your wife needing to avoid any stress after her operation. A motgage company trying to play these tricks on someone in their 70s is the lowest of low, the scumbags. God bless and I'll be praying that it all works out for you.

Anonymous · ‎09-01-2015

Appreciate your encouragement. Attorney contacted them and told them we'd like to keep the home, and asked how much money will we need to do that. Waiting for a reply from them. In the meantime, I'm supposed to put all the cash together that I can. Hope all will be well. I'll keep you informed. Thanks again for your kindness.

Anonymous · ‎09-03-2015

I have continued to make mortgage payment on my own each month since we converted to Chapter 7. The payments were received by Mortgage company, but doesn't show that it affected balance of mortgage. I believe the payments are being "held" pending meeting of creditors in couple weeks. Still trying to be positive.

appreciate your prayers.