Bought home in 2002 and was told that we could refinance in 2 years for better interest rate. Before 2yrs was up, loan was sold to countrywide. We refinanced with countrywide in 2004 and got a 1 point difference in interest. In Spring 2008, Countrywide increased our payment over $600.00 per month. We had a fixed "normal" mortgage and i thought they had made a mistake. They told me there was an "escrow" problem and I would just have to **** it up. By the summer, we were falling behind and so we went to a lawyer who did the "means" test and promptly told us that we did not qualify for chapter 7--so he filed chapter 13. We began making payments under the plan (about $3500.00 per month). It wasn't long before, we fell behind. For 2 1/2 years, we would fall behind and then somehow scramble and get caught up. During this period, we found out that BOA had taken over the loan and in the Spring of 2011 received a letter from BOA stating that our escrow account had an overage of over 8K and the payment was lowered back to what it was originally. (i.e. $600 less). I requested they return the overage to me, but they refused b/c we were in chapter 13. I then suggested that they apply it to the principle--they said they would have to have the account reviewed and I never heard from them again.
I then started going over the BK papers and saw a copy of the means test the atty had done. After researching into how to do a means test (found one on the BK court website). I saw that our atty had messed up! We should have been in Ch 7 all along. I called the atty and found out that he had left his practice to go be a BK trustee in another state. Before he left though, he got another atty as a partner and that atty converted our 13 to a 7. Now, with a month to go before discharge, I find that BOA is claiming 24 months past due; other secured creditors are also claiming huge past due numbers. Apparently, the BK trustee does not pay the secured creditors first-they pay the creditors over the course of the 5 year plan.
We are kinda screwed. I am worried that BOA will just wait until Feb 2012 and after the case is discharged, will proceed with FC. I contacted them for the first time last Thursday and they suggested that I send in documents to request a modification. They did not advise to request a "certain" type of mod. I never even heard of the mods out there until I came upon this site. I faxed them the docs they requested and called on Friday and was told they had already imaged my docs. So, they have everything they need except for a letter from our atty authorizing them to speak to us regarding the mod. For some reason--that they have not received even though I faxed it myself last Friday. I have re-faxed it today.