Legal Question in Bankruptcy in North Carolina

Motion for Adequate Protection and to Modify Stay

Chapter 7, Pro Se. On April 6th I sent letters to Primary, Secondary and Tertiary lienholders of our residence, declining reaffirmation. This is a VA loan. I have only stopped paying the mortgage payments on 1 April. Today I received a Motion for Adequate Protection and to Modify Stay from the primary mortgage holder. What is this and what does it mean? It says to me we are the primary mortgage holder, above all others; we are going to foreclose; please let us foreclose immediately. Quote "11. The aforesaid default by the Debtors ordinarily would have entitled 'mortgagor' to foreclose on the real property as shown in said Deed of Trust Note and Deed of Trust. 'Mortgagor' however, is enjoined from foreclosing on its security interest, pursuant to 11 U.S.C. ~ 362." "15. If 'mortgagor' is not permitted to obtain possession of its security interest in the Debtors' real property, 'mortgagor' will suffer irreparable injury, loss and damage." It then goes on to request adequate protection of its interest, pursuant to U.S.C. 361 & 363; one hearing only; for automatic stay provisions of 11 U.S.C. 362 be modified or terminated to that mortgagor may foreclose on the real property.....


Asked on 4/30/98, 7:53 pm

1 Answer from Attorneys
Melony Moore

362 Motion To Modify Stay

You need a lawyer, and fast. I can't begin to explain to you everything that is involved here. In short, the first mortgage holder wants to forclose on your home because you have failed to make (a?) payment(s). They need the courts permission to do this, and that is what they are asking for. Your not making that payment is grounds for them to argue that their equity in your home has no protection, and they want it back. (that's as simply as I can make it) It is much more complicated than that, particularly since you have refused reaffirmation. Not to mention that your second and third lienholders will probably follow suit. You are running a very real and serious risk of losing your home. Go get a lawyer fast!! Bankruptcy is not hard, you filed it yourself; but it is very technical and if you miss one beat, you lose, in this case possible your home.

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Answered on 5/20/98, 9:20 am


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