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what to do after lender files for motion for relief from automatic stay

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by gianna, Aug 23, 2010.

  1. gianna

    gianna LoanSafe Member

    hi, if anyone is/was in the same situation, any of your feedback is really appreciated! i filed for a loan mod with my lender (emc) in nov. 2009. i was in chapter 13 back then. been calling emc bk dept almost every week to follow-up on my mod, and everytime, they say it's still in process. they even have not put me on a trial payments or anything. then on april 2010, i converted to chapter 7, can't keep up with my chapter 13 since the monthly trustee payment is actually higher than my original mortgage.

    so i have been getting the same answer from emc bk department, that my loan mod is still in process, they just advise me to keep on calling every week. three weeks ago, my lender sent a notice to file for motion for relief from automatic stay. the hearing will be tomorrow. it's filed by citibank (trustee of the investor, STRUCTURED ASSET MORTGAGE INVESTMENTS, BEAR STEARNS ALT-A TRUST).

    so what do i do from this point on? i know that i have no defense and the motion will be granted. the lender can then pursue foreclosure proceedings. after the motion is granted, do i call the lawyers of citibank, and ask them when will they set the trustee sale, and if they can postpone it since my modification is still under review? or should i contact the chase executive team for help on my modification?

    i live in CA.

    thank you in advance for all your feedback!
  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    I would say that the servicer failed to act in good faith, and has made it impossible for you to comply with the trustee payments.

    MZWITHHOPE LoanSafe Member

    This is very common....they cannot help you unless the automatic stay is removed. They will proceed with the foreclosure and you can continue with your loan modification or they may have you apply again. You should contact your attorney for guidance but at this point I would continue calling your servicer weekly. I know that is a very stressful time but this doesn't mean they are just going to foreclose on you without trying to work something out with you.
  4. starspire

    starspire LoanSafe Member

    This is not easy to do, but you must file counter motion and go to the court. Ask the Judge to please allow for an extension of your stay BECAUSE you expect to recover financially very rapidly after the discharge, and you would like to keep your options open for a loan modification. Beg her, and she will likely appease you. The Lender will file a Trustee Sale immediately after discharge. When this happens you need to call the executive offices and ask them to please work with you. Explain that you had to file for bankruptcy to clear the slate and that you really do need to keep your home. Do not ask for a major payment or principle adjustment. Chase does not like it when Borrowers take an "entitlement" stance. They do appreciate it if you try to pay them as much as possible, but to be honest about your situation. Try to pay more, but don't overstate your ability. Walk the tight rope -- cut costs and make sacrifices to do it. Offer them as much money that you can actually pay. If you have second and third liens, tell Chase that you intend to settle with these lenders, and then begin the process with these Lenders. It also helps to explain why you filed for bankruptcy and that it was your very last choice.
  5. goldie

    goldie LoanSafe Member

    I'd like to know if your attorney THOROUGHLY examined their proof of claim on the 13? There may be nothing wrong, but chances are there are some junk fees/accounting errors and if this loan was securitized that's a whole nother mess. Did you pick an attorney who just does bankruptcies and doesn't do foreclosure defense or understand the securitization process or even mortgage servicing obligations/accounting? If so, that could be the problem too. You have a RIGHT to know who actually owns your mortgage and the trustee may not have standing. Chances are the judge will grant the MRS, they usually do, if there are no affirmative defenses. Is MERS on your loan? What BK court district are you in?

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