Q: I filed for Chapter 13 bankruptcy. Now I have a job making three times as much as I was, will this help ?
I filed for chapter 13 bankruptcy. Now I have a job making more then enough money to pay my mortgage. I have a attorney who just gives me yes or no answers. My lender (investors) told me I have six months to sell my home or they will foreclose. Shouldn't the NEW job and larger income help me save my home. All the lender (investors) want me to do is sell my home. Does this sound right ? I am still paying the Trustee $100.00 a month and I don't even know what that is for ! And they still haven't told me anything about a repayment plan. Confused in New Jersey !
A:
You need to retain the right type of attorney to handle this case. Only a mortgage foreclosure defense and bankruptcy attorney has the expertise to prevent you from having more problems than you can possibly imagine. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation. You need to retain the best mortgage foreclosure defense and bankruptcy attorney you can afford. You should not be restricted by geographic factors. Pick the best lawyer you can find and remember one rule: a good lawyer is generally never cheap, and a cheap lawyer is generally never good so don't choose based on price.
There is a very simple solution to your problem, provided that you can fund it. In NJ, the Bankruptcy Court's mortgage loan modification program in combination with a Chapter 13 Bankruptcy is your best chance to save your home and will block the sheriff sale. No one can guarantee a loan modification, but unlike other programs and methods, the lenders cannot play their usual games when the loan modification is pursued this way. Since everything is submitted electronically through a portal, it is time stamped. So the lenders can't just lose your application or deny that it was filed. The Bankruptcy Court's mortgage loan modification has "real teeth" behind it. If you are approved for a trial modification, you will be required to make 3 to 6 timely payments before getting a permanent modification. If you do qualify for the permanent loan modification, you will probably have a 40 year mortgage, frequently at a fixed rate of interest. No one can guarantee a reduction of principal but it does sometimes happen. The key to success is to retain an attorney who is an experienced mortgage foreclosure defense and bankruptcy attorney. The lenders attorneys know who they are, and they take them seriously. You get only one chance to do this right, so choosing the right attorney is critical. Good luck.
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