Not really sure what to do

Your attny is correct. If at all possible do not file until your loan modification is finalized. Once finalized the question should be which Chapter should I file since the house is no longer at risk. If you qualify, you might want to do a Chapter 7.

If you file a Chapter 13 before you have finalized the loan modification your Chapter 13 Plan will have to provide for the curing of the $11,000.00 + in arrears while you must resume your regular monthly payment (not some reduced payment based upon the loan modification process). During the course of the 13 you can continue to attempt to modify but since a modification cannot be forced by the bk court, you must begin sending regular payments based upon the original contract - or get something in writing from the lender that says otherwise. Chances are, you cannot afford the "cure and maintain" requirements of a Chapter 13 so it is best to modify the loan before filing.

As to your other creditors. . . until such time as one (or more) has a judgment against you all they are doing is trying to scare money out of you. That is the collector's job. Your job is to ignore them. It's like a game. . . learn to play it. (One caveat - if you owe $$ to a bank where you have accounts, close the accounts. If you cannot close the accounts, just don't use them. Never bank where you owe $$.)

Des.

Thank you for responding Des. Question, I received in the mail today Instructions for Forbearance Plan from Chase. I'm not really sure what it is, maybe a first step towards modification?

In response to:

"I received in the mail today Instructions for Forbearance Plan from Chase. I'm not really sure what it is, maybe a first step towards modification?"

Could be. Unfortunately I do not get involved with the loan modification process so I cannot comment. You have nothing to lose but to follow what ever instructions are contained in the package you received.

Des.

I think it is because it's asking me to send my payments directly to them. It says when the plan begins, all payments are due on the dates outlined in the agreement. I would assume if it was something different they wouldn't be asking for money.

Thanks Des.

It's really sad, but after all this is the only way out....Hope you resolve your financial problems and start afresh.:)

I can't say what the circumstances are in your instance but I will say that prior to getting a temporary loan modification I was also offered a forbearance in which I was not required to make payments for 3 months.

I was advised that my loan was back with the underwriter and to forget about the forbearance letter. I had e-mailed the CEO of Chase and was surprised by how quickly I received a response. I received a phone call from a person in the Executive Lending Office and also had the underwriter herself contact me.