Bankruptcy Questions!!!

cassie701 · #1 (**permalink**) 01-19-2006, 08:28 AM

First, I have a potential client who will be converting their Chapter 13 over to a Chapter 7 next week. They decided to go this route now because after talking to their lawyer they realized that after making payments for the last 2 years to their payment plan, pay them approximately $3000.00 per month.

Second, thier lawyer said that after this is changed they should let their home go into forclosure and save money and then move. I understand what he is saying but if there is any chance at all for them to save their home? Do you think they should re-finance after the conversion from 13- 7 because then they won't have to $3000.00 payment anymore and they can obviously apply that to the new loan payment??

I have never had a file like this so your expertise would be greatly appreciated!

macp · #2 (**permalink**) 01-20-2006, 11:39 AM

Try imperial lending they can go to 70 Ltv and save them from losing there house

Greg · #3 (**permalink**) 01-21-2006, 01:11 PM

Let a house go is a typical attorney advisement I see a lot.

Hello! Deed in Lieu so you save forex showing on credit and the mortgage company does not shovel out money for forex that is written off.

Never will get why most mortgage companies do not inform mortgagees of this option more aggressively.

Any other thoughts about this?

Also yeah refi is a 1st shot so try it out. BK buyout is possible on Chapter 13 through FHA if they pay 1 yr on time and trustee allows it.

6.00% fixed on a 30 PAR and 95% LTV Cash Out (Chapter 13 buyout only though and Mortgage refi) lol.