Legal Question in Bankruptcy in California

Going on 90 days before foreclose....... Help!

Hello, We are trying to get caught up on our morgage and it seems doomed ! the lender( which this lender just bought the loan) told me that if i make a payment before the 31st of Nov.that the lender can put us on a ''forbearance''plan which we are about $8K behind( less if we can come up with $2400.)Here is the stats: 30 year ARM @10% ! $2400 month morgage (which includes at my request,$300 inpound for pp taxes)My question(s) are as follows: 1st; If we file chpt 13 can we have time and hopfully reduce interset on the past due amounts? 2nd;Can the trustee reduce the main interset( 10%) ? 3rd; If we do file 13 can the lender and or the trustee forse sale on this property? or what should we do, we are afraid that if we do the forbearance plan that lender wants alot more per month, setting us up for failure ! Help! i need to do something before this wednesday Nov 31st lender told me that we will be in forecloser after that.


Asked on 11/25/05, 7:09 pm

1 Answer from Attorneys
Phyllis Voisenat Phyllis Voisenat, Esq.

Re: Going on 90 days before foreclose....... Help!

First, you should be aware of your time frame. The california nonjudicial foreclosure process takes 120 days. You first get a notice of default with 90 days to cure. Then you receive a notice of trustee's sale which tells you the actual date of the foreclosure. So, depending on where you are in the process your options change.

In Chapter 13, you will be required to start making you regular monthly mortgage payments, plus a Chapter 13 Plan payment that will include an amount to bring your back payments current. Depending on whether you qualify for a 3-5 yrs plan, this amount will change, among other factors.

In terms of interest, the Trustee cannot change the interest rate of your loan. The default amount will accrue interest at the rate stated in your note, or if not, then in your chapter 13 plan if approved.

We have helped many people cure a default both in and out of bankruptcy. If the mortgage is your only problem, then you should explore having an attorney negotiate a forbearance for you. We work in this area, as well as bankruptcy, if necessary.

Finally, if you negotiate an forbearance yourself, which I do not recommend, then be sure it is in writing, signed by an authorized person!

With your house at stake, I highly recommend you get an attorney experienced in negotiating these matters, such as myself.

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Answered on 11/26/05, 1:41 pm


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