Posted on: 04th Apr, 2012 02:47 am
A friend of mine lost his job and then went through divorce. He faced an income drop of around 80%. He wants to keep his home, got lender to agree to interest-only payments for 5 years while he gets back on his feet. Mortgage was sold to another lender who won't honor the agreement and now wants to foreclose the property. Would a Chapter 13 allow him to keep his home under substantially the same payments as the interest-only?
Hi Cornelly,
If your friend files Chapter 13, then he will receive a payment plan depending upon his financial situation. The mortgage payments will be accordingly modified. If your friend finds that he will be able to afford the payments, then he can go ahead with the deal or else, he may ask the trustee for a better deal.
Take care
If your friend files Chapter 13, then he will receive a payment plan depending upon his financial situation. The mortgage payments will be accordingly modified. If your friend finds that he will be able to afford the payments, then he can go ahead with the deal or else, he may ask the trustee for a better deal.
Take care
Hi Cornelly!
Welcome to forums!
Before filing Chapter 13, I will suggest your friend to have a word with the new lender and negotiate with him and convince him to sign a new agreement which might help your friend to save the property and make interest only payments.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Before filing Chapter 13, I will suggest your friend to have a word with the new lender and negotiate with him and convince him to sign a new agreement which might help your friend to save the property and make interest only payments.
Feel free to ask if you've further queries.
Sussane