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Foreclosure after BK

Posted on: 13th Jun, 2011 11:33 am
i have a home valued at $120,000 with a first ($60,000) and a second at ($35,000). these loans were discharged in a ch 7 bk in 2004. i have been paying on them voluntarily for the past 6 years. the second matured last year with the balloon for principal, the loan was interest only. i was told it was to be charged off, with no foreclosure. now they are foreclosing. i made an offer of $15,000 but they refused and said they are going to go after my equity in the home. i cant refinance because i have a disabled child and cant find care for him so i cant work. i am fighting with that issue as well now.

the public trustee states that they are selling the lien, not the home. they are selling the lien subject to the first mortgage (means the second will buy out the first). i understand that they want their money, but i have been paying on my mortgage for 14 years and have earned equity of $25,000. how can they just take that and give me nothing in the end?

i can file another bk for ch 13, but i have no other debt then this and it is already protected under bk. i am thinking about reopening the bk for 2004 and if the home has to be sold, ask the bk trustee to do it so i can get my equity, or my homestead exemption of $45,000.

according to the response on the intent to cure, the second lender is stating that i now owe an additional $7000 for fees in addition to the principal. can they charge these fees after the bk? can i make the $35,000 payment of principal and get my lein, or am i liable for all the charges they are saying i owe? i thought the financial portion of the deed of trust was eliminated with the bk. is the second lender violating the bk orders if they try to collect these fees and hold my home hostage to get them?

also i am one month behind on the first mortgage. i am thinking that if i let the first mortgage foreclose, they will go against the second lender to try to get the equity as well which may buy me some time. i have legal counsel, but it is free legal aid which they have said they dont know much about foreclosure, and zero about bk laws. i am doing most of the work on this myself.

i have some money which i am very cautiously holding onto. i dont want to pay a good lawyer if i dont have a chance, and i dont want to let the first foreclose if i will have to pay the fees on that as well. moving from my home is not an option as the home has been modified for my son's needs. there is no other place other then an institution he can go if i dont get this worked out.

can you please offer me any suggestions or ideas on how i can fight this?
Honestly you should contact a local real estate attorney. You should be able to consult for a competent attorney for free. If it looks like you have a case or a shot, then you can hire the attorney. You cant trust your lenders words and you cant trust a legal aid company that knows nothing about mortgages and real estate law. A call should be your first move. If the attorney wants a consultation fee, move on. You need to get your states laws regarding your BK and the possession and ownership of your home researched and resolved asap.
Posted on: 13th Jun, 2011 01:06 pm
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