Chapter 13

I was just informed that my mom had filed a chapter 13. I don't know much about bankruptcy and everything I look at reads like stereo instructions.

Recently her home was about to go into foreclosure. They were able to stop the proceedings and file for the chapter 13 in time. However, because she has refinanced so many times in the past and couldn't keep up with the payments her mortgage is sky high now. $4200 a month.

Is there anyway to reduce that? Any suggestions or info would be greatly appreciated.

Has she looked at mortgage modificatiton?

I don't think so. What is that and how does it work?

Modification is modifying the terms of the loan. Has she talked to her lender? Most lenders websites will have information posted right on the home page.

If she just filed BK and the home was stopped from going into forclosure then she may not qualify for loan modification. She should have applied for the loan mod before the BK

It doesn't hurt to inquire about it. Be careful and research the companies before choosing one. Best of luck!

Yeah - unfortunately she didn't come to me before all of this happened. She came right down to the wire with her BK too - then landed herself in the hospital.

So now that I know I am seeing if there is anything else we can do because now she's going to be on Disability and won't be able to keep up on that type of a mortgage. Since she went into the hospital the mortgage company tried to hold it off for her.

Unfortunately a BK will take care of the past-due arrearage, but will still require her to make the current/future monthly payments on the mortgage. If she doesn't make those payments, the mortgage company can file a motion to modify the stay and resume foreclosure.

In certain circumstances, the BK attorney might have been able to get a cram down and either lower the mortgage payment/interest or even strip their liens, but that has to be done before the plan is confirmed.

Outside of that, a modification or another refinance might be her only options if she can't afford the payments.

Who is her lender? The larger companies will do a modification if there is a hardship which it sounds like there is.

I'm not sure. She's been unable to go over any type of paperwork since her discharge from the hospital mid-last week.

But I will check with her now that she is becoming more stable.

thanks!