Legal Question in Bankruptcy in Massachusetts

You should make sure that you can not strip off the second mortgage before proceeding further. You may be able to strip off the second mortgage if the balance of your first mortgage is higher than the value of your house. The exact balance can be obtained from your first lender by asking for a payoff figure or you can look to the proof of claim that your lender filled. If strip off is not an option then you should see if your attorney can amend the plan to catch up on the payments for the second mortgage and revised your budget. If you can not amend your plan you can contact your lender to see if they are willing to settle for less than you owe in a lump sum payment if you are able to take out money from a retirement account or borrow from family or friends. Loan modification is another avenue you can explore depending how far along you are in terms of the foreclosure. Your lender can not just foreclosure on you, they need to file a Motion for Relief from Stay to obtain permission from the Court to proceed. At this point it sounds like you may want to hire another attorney to at least review your case and look at your options.

It may still be possible to correct the miscalculation, reduce your payments to the court, and create a catch-up stipulation to pay back the missed payments on the second mortgage. However, I am confused why it would take so long to figure out that the calculations were incorrect. Your attorney should have reviewed all figures with you before you signed off on your Chapter 13 plan.

Good luck.