Already in a Chapter 13, but Possibly Facing Foreclosure

[knight231]

My question involves bankruptcy in the state of: Florida

I have been in my CHAPTER 13 for 19 months now, and have not missed one payment. I have also been current on all utility bills, car loan, student loan, car insurance etc; however, I have missed two mortgage payments. (PLEASE NOTE: those two missed mortgage payments were not consecutive, but a few months apart, and payments were made prior to and subsequently after a missed payment). I however have not had the financial means to play catch up and pay the two missed payments($3,100 total). ALSO, my mortgage was re-affirmed and not included in the Chapter 13. **reason for missed payments, 10% paycheck cut and unexpected repair bills(A/C system and car).**

MY DILEMMA OR PARANOIA IS: I just received a letter from a law firm, citing Federal Bankruptcy Law(Section 2002 g) that they be on the mailing/notification list on any and all correspondence regarding my bankruptcy, and that they also represent my mortgage company. After checking the internet on this law firm, it was evident that they are a Foreclosure Mill. I found several news articles about this law firm; also a little side note about this firm, one article stated that this law firm was being investigated by the FBI, but I digress.

Also, about 4 weeks ago I sent an application to my mortgage company regarding mortgage relief. They sent this application to my lawyer, who in turn forwarded it to me, but I have not heard anything to date.

My questions are these:

1) Is my mortgage company preparing a foreclosure, by attaining the services of that law firm?

2) Does a foreclosure affect my confirmed Chapter 13, if it happens?

3) Do I have options?

PLEASE: I know that I need to talk to my lawyer, but he is unavailable for 3 weeks(European vacation). I am seeking input and educated opinions on my situation...Thank you all for any advice.

[despritfreya]

My question involves bankruptcy in the state of: Florida

I have been in my CHAPTER 13 for 19 months now, and have not missed one payment. I have also been current on all utility bills, car loan, student loan, car insurance etc; however, I have missed two mortgage payments. (PLEASE NOTE: those two missed mortgage payments were not consecutive, but a few months apart, and payments were made prior to and subsequently after a missed payment). I however have not had the financial means to play catch up and pay the two missed payments($3,100 total). ALSO, my mortgage was re-affirmed and not included in the Chapter 13. **reason for missed payments, 10% paycheck cut and unexpected repair bills(A/C system and car).**

MY DILEMMA OR PARANOIA IS: I just received a letter from a law firm, citing Federal Bankruptcy Law(Section 2002 g) that they be on the mailing/notification list on any and all correspondence regarding my bankruptcy, and that they also represent my mortgage company. After checking the internet on this law firm, it was evident that they are a Foreclosure Mill. I found several news articles about this law firm; also a little side note about this firm, one article stated that this law firm was being investigated by the FBI, but I digress.

Also, about 4 weeks ago I sent an application to my mortgage company regarding mortgage relief. They sent this application to my lawyer, who in turn forwarded it to me, but I have not heard anything to date.

My questions are these:

1) Is my mortgage company preparing a foreclosure, by attaining the services of that law firm?

2) Does a foreclosure affect my confirmed Chapter 13, if it happens?

3) Do I have options?

PLEASE: I know that I need to talk to my lawyer, but he is unavailable for 3 weeks(European vacation). I am seeking input and educated opinions on my situation...Thank you all for any advice.

1st, you did not reaffirm your mortgage and it IS included in your bk. You do not reaffirm anything in a Chapter 13. Your Plan states that you will continue to make mortgage payments and keep the property. If you were behind in payments when you filed, your Plan also states that the arrears will be cured through the Plan.

2nd, your creditor, through its attorney has filed a "Notice of Appearance". This is nothing more than a request by the creditor that notices be sent to its attorney. This is standard operating procedure for most lenders regardless of the "reputation" of the attorney hired by it.

3rd, by you stating that you have "sent an application to my mortgage company regarding mortgage relief", I will assume you are attempting to "modify" your loan just like thousands of other Americans. This has nothing to do with your bk and, good luck with it since very few modifications are happening and getting one through can take over 1 year.

4th, missing two post petition mortgage payments IS NOT the end of the world. You do need to catch them up, including late fees. If the lender files a Motion for Relief From the Automatic Stay, normal operating procedure would be to enter into a Stipulation to bring payments current (including late fees and, now attny fees) over a 6 month period. Your attny can explain this in greater detail.

Now, in specific answer to your questions:

1. Not necessarily
2. Only if it means the Plan should be modified to remove pre petition arrears to the lender that have not been paid.
3. Yes. . . loan modification (takes a very long time) or an official stipulation to cure the post petition arrears or just do what you can to bring the account current on your own before a Motion is filed.

Hope this helped.

Best regards.

Des.

[ebonee]

from what i gather from your post.is youve missed the mortgage payments since you have been in the chapter 13.part of being in chapter 13 is that you keep current on all your bills.and if you dont you could be thrown out of the 13 plan,and your creditors can once again come after you.i dont know what kind of equity you have in your house,but maybe you could possibly convert to a 7.you definetly need to discuss your options with your attorney.