Legal Question in Bankruptcy in Massachusetts

Re: Can I lose my home ?

Hello and Thanks for Writing -

My name is Len Foy and I am an experienced real estate and bankruptcy attorney. I am licensed in Massachusetts, New Hampshire and in California.

I don't recommend bankruptcy, you have too much equity in the property, you're in arrears on the mortgage and there are interstate jurisdictional issues.

I do recommend a refinance, which will likely extend the repayment term and reduce your monthly payment. I know of an exceptional loan officer who can assist you - if you'd like her name and number, either call me at (603) 434-3437 or send an email to me at [email protected].

Regards and Good Luck -

Leonard Foy, Esq.

Re: Can I lose my home ?

Your house is very much at risk. Though a bankruptcy filing could protect the equity (only if the house is your primary residence and you took the massachusetts homestead exemption, which would probably require you to move to Massachusetts), it will not protect you from a foreclosing mortgagee that has not been paid. Generally, the magic number for the commencement of a foreclosure is 3 months in arrears on payment. You are almost there. By all means you should approach the lender, explain your current financial situation and see if they will enter into some sort of forbearance agreement, one in which the lender will accept smaller monthly payments for a period until you get back on your feet financially. You could consider filing a Chapter 13, but again, absent regular income, this would also prove futile. Another possibility would be a refinance in which you would attempt to secure a greater amount of money than currently on the house. You would use this additional money to make mortgage payments while you looked for another job. Have you explained the situation to your step-dad? He may have to start paying rent if he wants to continue having a place to live.