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I Don’t Want to Get Foreclosed On When My Chapter 13 Bankruptcy is Over. – Ali

Written by Steve Rhode

“Dear Steve,

I have home in California, Bay Area, I filed for Chapter 7 BK, 4 1/2 years back due to business losses & Laid off work, BK 7 was Discharged and immediately i filed for Chapter 13 BK, im still active in my current plan and according to the terms mentioned in my BK 13 Plan, i was suppose to deal with my Junior HELOC for $250K outside of the plan, My main intention was to save my home.

Several Attorneys were paid due to everyone tried to scoop in and then ending up losing their licenses cancelled by the Bar(I never reported anything). My current Attorney, thou advised me i wont be successful, i tried to go back to court and filed for Motion to Value and Strip Chase/ Wamu HELOC, Loan is sitting at FIVE LAKES AGENCY, Chase got a new appraisal done and according to them, Home is Valued $570K, i owe $350K on my First with Wells Fargo and Chase is offering a settlement for Discharged HELOC to my Attorney for $100K.

Im asking your honest opinion of what should i do? I dont have $100K to pay in one full lump sum. Once im thru with my BK 13 plan in November 2013 and im not under water and my attorney said Chase may foreclose upon me.

I seek your Honest opinion and thank you for reading and responding in advance.




Dear Ali,

Why is the HELOC being handled outside of the chapter 13 bankruptcy? Was it charged off in the chapter 7 bankruptcy?

I really feel there is more to this story than you’ve shared. Maybe you can provide some more details in the comment section below.

In the meantime you will probably be interested in reading Why It Makes Sense to Consider Debt Settlement for Second Mortgages and HELOCs.

If you have that much equity, have you considered selling the house to avoid a foreclosure?

READ  Can I Get a Mortgage Release for My Second Mortgage if I Settle It? - Patricia

Please post your responses and follow-up messages to me on this in the comments section below.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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