Saint Paul, MN asked in Bankruptcy for Minnesota

Q: I have filed a chapter 13 as i want to keep my home. Lender wants me to sign a deed and lieu.

I took out a heloc from my bank, it became due and they sold my loan to a lawyer. I called him, and asked him what i needed to do to get my loan up to date. He said he would call me back with a number i could pay. I asked him If the amount due was the whole loan, he said no. 3 weeks went by and i never heard from him, finally i was able to reach him via phone, he says i owe $13000. My loan was for $13000. I received foreclosure papers and filed a postponement of sheriff sale, i made the choice to file chapter 13. They want me to sign a deed and lieu, stating if i default they will give me 5 weeks and $5000. They objected to the first plan payment of $960 monthly, so a second plan payment was put on the table of $1260 a month. They agreed and also wanted to be the sole person to be able to redeem the loan at the sheriff sale if i defaulted, i agreed. A few minutes later they changed there mind and want me to sign a deed and lieu. Attorney will quit, bcuz i cant afford fees.

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1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: Don’t sign the deed without discussing with your lawyer. You can put your arrearages into the plan and pay them off in two years. Find the money for your lawyer bc you can’t afford to lose your house.

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