now claim that the debt is UNSECURED and make them PROOF OF CLAIM (POC) which they probably will not be able to do without some fraud.
Can you please help me? I'm desperate and scared
- Thread starter Jack Catalano
- Start date
Jack Catalano
LoanSafe Member
How would I go about doing that?
isisis
LoanSafe Member
With a Chapter 13 your arrears and trustee payment will be something like $500 a month. I know because years ago I had about $30,000 arrears in a five year plan. Since that's out of your range you need to just ride out the Chapter 13 for awhile and then it'll be dismissed. This could take maybe two to five months. Alternately you could challenge their proof of claim and fight foreclosure in bankruptcy.
If it's dismissed or in the meantime you could look into the mediation they offer in your state. Maybe it would be possible to get a new modification with the arrears put at the end of the loan. I really have no idea what they might offer or if they'd offer anything but it's worth checking out. There are various organisations you can contact for help on this link.
You can submit a application for a new modification and if it's denied you can appeal. That will at least buy some more time. Then when they try to foreclose again you can refile for Chapter 13. I'm not sure how often you can do this because some of the law around that issue changed, used to be you could just keep on refilling.
Anyway you'll gain some time. What you do with that time it's what matters. If I were you I'd start educating myself of everything to do with your loan, the laws surrounding Connecticut foreclosure procedure, who owns your loan (you may be able to find the name of that entity on the notices you received), you should also send a Qualified Written Request (QWR) asking who owns you loan and asking for an account history, that's important, you may be able to find "mistakes" they made in which you were overcharged. If that's the case you might be able to stop a foreclosure because they are asking for money in excess of what you owe them.
All of this information could help you find out if the entity trying to foreclose actually owns your loan and had the standing to foreclose. It may also help you identify errors in filing.
Look for all the correspondence you've received on the loan (the things you were told may turn out to be useful to you) and keep it together in a note book for easy reference.
In example my servicer sent a letter saying that the investors had given them no authority to modify loans. This was an important part of my case because it demonstrated fraudulent conduct that would make foreclosure wrongful because it wasn't cured.
Use this time to learn all you can about your rights. Knowledge is the best protection against foreclosure.
If it's dismissed or in the meantime you could look into the mediation they offer in your state. Maybe it would be possible to get a new modification with the arrears put at the end of the loan. I really have no idea what they might offer or if they'd offer anything but it's worth checking out. There are various organisations you can contact for help on this link.
You can submit a application for a new modification and if it's denied you can appeal. That will at least buy some more time. Then when they try to foreclose again you can refile for Chapter 13. I'm not sure how often you can do this because some of the law around that issue changed, used to be you could just keep on refilling.
Anyway you'll gain some time. What you do with that time it's what matters. If I were you I'd start educating myself of everything to do with your loan, the laws surrounding Connecticut foreclosure procedure, who owns your loan (you may be able to find the name of that entity on the notices you received), you should also send a Qualified Written Request (QWR) asking who owns you loan and asking for an account history, that's important, you may be able to find "mistakes" they made in which you were overcharged. If that's the case you might be able to stop a foreclosure because they are asking for money in excess of what you owe them.
All of this information could help you find out if the entity trying to foreclose actually owns your loan and had the standing to foreclose. It may also help you identify errors in filing.
Look for all the correspondence you've received on the loan (the things you were told may turn out to be useful to you) and keep it together in a note book for easy reference.
In example my servicer sent a letter saying that the investors had given them no authority to modify loans. This was an important part of my case because it demonstrated fraudulent conduct that would make foreclosure wrongful because it wasn't cured.
Use this time to learn all you can about your rights. Knowledge is the best protection against foreclosure.
OneHugeMess
LoanSafe Member
Honestly, I wouldn't do that. I would try to get another loan mod, or reduction in arrears, and get on a repayment plan. He needs a home to live in, not a three year eviction.
What I've come to realize very slowly overtime, is while we all want to target these lenders, we also need to be practical. This poor gentlemen has been put through the wringer enough, and I want him to be able to keep the house.
OneHugeMess
LoanSafe Member
Whoever is servicing this mortgage (the people who mail you the monthly statement) - should be informed on Monday, that you have filed for Bankruptcy Protection. I would call them, and I would also ask them to send you a "RMA" Packet, which is formally called "Request for Mortgage Assistance". You need to fill out a form and try and see if they will come up with a modification, or plan - that may be more beneficial -- than the 5 year repayment.
I also think -- you should ask friends, family, high school buddies, anyone you know - who may need a place to stay. See if they are interested in splitting some of the bills. If all else fails, maybe, try to find responsible people on Craigslist.
Jack Catalano
LoanSafe Member
I got a lot of paperwork to go through that they gave me yesterday. But I want to thank you all for all your help. It makes what I'm going through a little more easier.
Just so you know, it is possible to convert a chapter 13 into a chapter 7. (and vice versa) The good part about 13 is legal charges go into plan payments. Don't sweat if you think one over other is an error or better move. It's done! Also...Quick comment on the room mate at 600/mo. When using this as income for a potential modification negotiation (if that's where you go) realize that you will not have 100% occupancy. Most rentals incorporate 1-2 mo per year vacancy into any future income projection. Meanwhile, you have breathing room to look for better job opportunities, just get some history in the field before you consider it stable income. Ordinarily most banks want 2 years same industry/pay to qualify for better loan terms.
Jack Catalano
LoanSafe Member
I received something in the mail yesterday regarding The Bankruptcy Court. It says that I have to have documents filed within 5 days of The Petition Date. It also says that I have documents have to be filed within 14 days of The Petition Date. What I like to know is when is The Petition Date is? I don't think it says on the form about when The Petition Date is. Can you please help me?
Call and ask the bankruptcy court for clarification. Clerks can answer q's on process that are not legal in nature. Also, I would think the Petition Date is the date you filed the BK petition. Bankruptcy rules are same in all States, there are downloadable forms and usually these, if not filed with petition, are x days to be filed. Likely your notice. If you have an attorney, they can answer as well.
Jack Catalano
LoanSafe Member
I don't have an attorney. My father has been helping me. So, I should call The Bankruptcy Court on Monday?
Yes. Are you having trouble with any forms? I found an easy way to include everyone on the debtors list is using your credit report. Utilities sometimes listed too. I am not sure about reaffirming your loan. Everyone has an opinion. Most attorneys recommend against it because the purpose is to not be personally liable. This does not mean you can stop paying and it goes away. In a Chpt 13, some have had success in reducing 2nd if there is negative equity. (You are asked to identify amount owed and value in your real estate schedule.) Some people keep paying during BK. Try to get that room mate once you have a paperwork break.
The benefits of a BK7 are that your are freed up to make larger payments on the house by reducing debt.
Jack Catalano
LoanSafe Member
I am having some trouble with the forms. So, should I call The Bankruptcy Court on Monday?
Jack Catalano
LoanSafe Member
I think I finished the paperwork for The Bankruptcy Court although I'm not sure and need help. Can someone help me or should I just call The Bankruptcy Court tomorrow?
I'm not an attorney. It's possible to get extra time (an extension) on the forms. Legal aid usually has clinics on bankruptcy and/or foreclosure if you think this will help. I found that I only needed a couple of questions that needed to be answered. In the end you do your best. I got scared and hired an attorney when I was at your stage.
The only thing that attorney did for me was retype my forms and charge me 750 for the privilege. (Instead of the 350 filing fee) She didn't even show up for the hearing date. Sent a substitute! She also referred me to a refi man on my car for a 29% loan. (and made mistakes that I didn't make) SOOOO. For me, I was better off not wasting the money but I didn't know it at the time.
Turn in what you can. I hope you got some answers by now.
The only thing that attorney did for me was retype my forms and charge me 750 for the privilege. (Instead of the 350 filing fee) She didn't even show up for the hearing date. Sent a substitute! She also referred me to a refi man on my car for a 29% loan. (and made mistakes that I didn't make) SOOOO. For me, I was better off not wasting the money but I didn't know it at the time.
Turn in what you can. I hope you got some answers by now.
Jack, if you still need help, let me know. My email is [email protected]. I got my loan modification approved on Feb 25, 2020 after filing chapter 7 and having a foreclosure sale date last Feb 19, 2020. I have a friend who is helping me.
Jack Catalano
LoanSafe Member
Now is true that I don't have to go to Bankruptcy Court on Friday? It will be discharged and I could apply again? Is that true? If I don't go does that mean I'll have to leave my house quicker which is what I don't want?
OneHugeMess
LoanSafe Member
I think you should go on friday no matter what. Is there anyway you can get a legal-aid attorney?
OneHugeMess
LoanSafe Member
If all else fails, maybe this?
upsolve.org
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Jack Catalano
LoanSafe Member
The thing is that I'm eligible for a Government Assistance Program that's a Reinstatement Program regarding my house. I've been in contact with Consumer Proponents which told me about the Government Assistance Program. But you guys think I should go anyway tomorrow?
Jack Catalano
LoanSafe Member
I also have my father helping me with the paperwork instead of a Lawyer.