Posted on: 21st Mar, 2010 06:23 am
We filed chapter 13 last year and our lender approved a loan modification after the fact (12 months into it) but made our payments higher so we declined it. We were never late on the 2nd but the 2nd lender (a credit union) won't negotiate any terms with us.
The question is: Can we do a DIL during a chapter 13 and include the 2nd without the lenders coming after us with a deficiency lien?
Thanks,
Momrocks
The question is: Can we do a DIL during a chapter 13 and include the 2nd without the lenders coming after us with a deficiency lien?
Thanks,
Momrocks
Welcome lmaustin,
As you're in Chapter 13, you must have received a payment plan from your lenders in order to pay off the dues. Aren't you able to pay off the loan with the help of that plan? You may request your lenders to modify the plan as per your financial situation so that you do not have to sell off the property.
As far as the deed in lieu of foreclosure is concerned, it would be completely the lender's discretion whether or not he would be ready for it. Moreover, as far as I know, you won't be able to go for it when you're in bankruptcy. After your chapter 13 discharge, you can negotiate with your lender for the same.
As you're in Chapter 13, you must have received a payment plan from your lenders in order to pay off the dues. Aren't you able to pay off the loan with the help of that plan? You may request your lenders to modify the plan as per your financial situation so that you do not have to sell off the property.
As far as the deed in lieu of foreclosure is concerned, it would be completely the lender's discretion whether or not he would be ready for it. Moreover, as far as I know, you won't be able to go for it when you're in bankruptcy. After your chapter 13 discharge, you can negotiate with your lender for the same.