Foreclosure during chapter 13.

[Wonderman]

I have 1 year and two months left for my 5 year chapter 13 plan. At this point I've paid in around $109,000. I have missed a payment on our mortgage due to repairs needed on the house. I assume they will start foreclosure. We have an 80/20 loan. What is the likely outcome in my situation. I just want to be prepaired for another storm. Do I go back to my Bankruptcy lawyer for options? We are currently renting this house outs we moved about a year ago for my wife's job. Another twist this is that renters have up and asked to decrease the amount they can pay because they can no longer afford to pay us full rent.

The house tax value is $52,000 and we owe $105,000 on the 1st mortgage and $20,000'on the second mortgage. Any thoughts folks?

[Cat Damiano]

Hi wonderman,


Yes, you would need to contact your bk attorney to see what the options are and also to help advise you on what your next step would need to be since you are still under the bk protection.

[ozeyeruz]

Im on the same boat kind of, about 2 more years to go in BK 13 but lost OT and Major decrease in work hours and cant afford to keep up with Mortgage payment. Just missed first month this july, went to my attorney and we are trying for a conversion to chapter 7 and I will just surrender the house which is $75K underwater with a 7.25 apr. So as of now im not paying anything and we will try and convert around october....