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getting a loan while in 13

Posted on: 25th Mar, 2008 11:23 am
i have a mortage with litton loan services. and at one point we fell behind,and of littons sent us a forclosure. in order to keep me from losing my house i went into chapter 13. just before we went into to chapter 13 we got the rate increase from the arm on this loan. this jumped to 800 dollars more. at the same time we received a letter from littons midigation dept want to refinance the loan at a lower rate and about the same amount of our orginial payment. but in the mean time littons dose not talk to the midigation department and the littons loan service keeps calling for forclosure. my chapter 13 lawyer talked to littons lawyer and littons lawyer had to post pone a court date because the lawyer got no answer from either dept. now i have 60 days to work out a refinance with the midigation and you can not get anyone to return your calls. i was on the web and found several sites with people with the same problems with this company and have lost their homes. please advise what to do. sell- work out a deal - refiniance. with combined income we make enough very little debt, but the loan company has sent our credit scores to the pits.
marsha
Hi Marsha,

Welcome to the forum.

You are now under chapter 13 right. So the lender cannot foreclose the mortgage if you are making the chapter 13 payments on time. Are you not making the payments on time?

BTW as you have not yet discharged from chapter 13, I think you cannot get a loan or refinance now.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 25th Mar, 2008 11:32 am
Hi Marsha,

What I understand here is, Litton Loan has suggested a refinance while you are in Chapter 13. But you have been making payments to recover the dues. Then I don't understand why the mitigation dept wants you to go for a refinance. Moreover, they aren't returning the calls, so if you have to make an enquiry, how will you go for it?

I think you talk to your lawyer and ask him whether the Ch 13 will stop after you refinance because it's no longer needed. But hey, let me tell you, most lenders don't agree for a refinance if you haven't made 2 years of payments in Ch 13 plan. So, how long have you been following the Ch 13 plan?
Posted on: 25th Mar, 2008 11:58 pm
Hi,

As per as my knowledge is concerned, the lender cannot foreclose the property as you are in chapter 13. You are already under easy repayment plan given by chapter 13 so why will you opt for refinance? In case you face any difficulty in paying your monthly payment you can talk to the bankruptcy attorney.
Posted on: 06th May, 2010 11:10 am
sounds like the different departments of Litton need to talk to each other. At the end of the day, your main focus should be to stick to the terms of your CH13
Posted on: 06th May, 2010 03:01 pm
sounds like the different departments of Litton need to talk to each other. At the end of the day, your main focus should be to stick to the terms of your CH13
Posted on: 06th May, 2010 03:02 pm
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