Legal Question in Credit and Debt Law in Indiana

Second Mortgage Collection

My husband and I took out a small second mortgage about 8 years ago. With the high heating costs this winter, we got behind on payments. I sent them the payments due by cashiers check as requested. They returned it and told us to contact their lawyer. I only get a recording. They did send a letter which to me it seems they want the full amount which is about $6000 which we don't have. Should I just send what I can to the lawyer since the finance company returned my payment?


Asked on 3/08/06, 5:27 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Second Mortgage Collection

I am sorry for your problems with this company. If you are in default on your obligations under the note, then the company is within its rights to not accept payment and proceed to foreclosure. You can stop a foreclosure and pay the arrearage over time by filing a Chapter 13 bankruptcy. There are some new hoops you need to jump through under the new bankruptcy law, among which are careful preparation of your financial records (bank statements, tax returns, bills and wage stubs) and consulting with an approved credit counselling. First, speak with a local lawyer experienced in bankruptcy lawyer before you decide to go this route. The lawyer will be glad you called. Many lawyers will accept a Chapter 13 case with a small portion of the fee up front, the balance in the Chapter 13 plan. Good luck.

Read more
Answered on 3/08/06, 8:50 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Indiana