Do we need to pay the $4200 mortgage payment plus another $4200 for arrearages each month for 5 years? 14 Answers as of January 18, 2016

Our primary home is in active foreclosure (no payments in six years). We want to keep home but arrearages are about $400,000 (includes interest and taxes paid by lender). Can we do Chapter 13 to keep home? Our monthly payments with taxes and insurance is about $4200. We are self-employed and not sure if we can show (or have) the $8400 each month to pay.

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
In ch 13 you have to pay the mortgage every month and a catch up payment on the past due payments. They only give you 60 months to catch up.
Answer Applies to: California
Replied: 1/18/2016
Ronald K. Nims LLC | Ronald K. Nims
$400,000 in arrearages paid over the 60 months would be around $7,000 per month. Plus the $4,200 for the current payments. Plus the trustee fee of 6% to 10%. So the total payment would be around $12,000 per month. Bottom line is you don't have the income to support this mortgage. Which might be why your arrearage is so large. You need to surrender the house in your Chapter 13 then move to a place you can afford.
Answer Applies to: Ohio
Replied: 1/18/2016
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
Yes, you can. We can also try for some type of modification where you can catch up or have a balloon at the end.
Answer Applies to: Florida
Replied: 1/15/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
You may structure the repayment of your mortgage arrearages any way you like, but to retain your home in a Chapter 13, you will need to resume your ongoing mortgage payment and resolve the arrearage within 60 months. For some people, a mortgage loan modification can provide a solution, and this option can be considered before or after you file Chapter 13. What you want to do needs to be within your ability to actually prove that you can do this.
Answer Applies to: Nevada
Replied: 1/15/2016
Stephens Gourley & Bywater | David A. Stephens
Unless you can work out a modification with the mortgage holder, you would need to pay the current monthly payment each month and then fully pay the arrears over a period of sixty months.
Answer Applies to: Nevada
Replied: 1/15/2016
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes, provided you have the ability to pay.
    Answer Applies to: Michigan
    Replied: 1/15/2016
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    If your arrears are $400,000 then the plan payment for that portion alone would be about $6,667 ($400,000 divided by 60 months). You also have to make the current monthly payments. If there is a chance of a loan modification that can be factored in. I strongly suggest that you go see a knowledgeable local bankruptcy attorney for assistance and advice. There may be other relevant information and other debts that would need to be paid in the plan as well.
    Answer Applies to: California
    Replied: 1/15/2016
    Patrick W. Currin, Attorney at Law | Patrick Currin
    The trustee will need you to demonstrate the ability to make any proposed plan work. If you can't show this the plan won't be approved.
    Answer Applies to: California
    Replied: 1/15/2016
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Meet with a lawyer face to face to discuss your situation. Offer to pay for the one hour meeting (it may take up to two hours). Your case is not a typical Chapter 13 case. Your first hurdle is to qualify for a Chapter 13 filing. Then there are many other matters that need to be discussed. If you do a "free consultation", you will get exactly what you pay for. These meetings last about 15 minutes. Good luck!
    Answer Applies to: Colorado
    Replied: 1/15/2016
    Garner Law Office
    Garner Law Office | Daniel Garner
    A chapter 13 filing can postpone a foreclosure, but your plan would have to propose how you would cure the arrearage, or would propose a loan modification which, if not successful, would result in surrender of the home. During the time you would be applying for the loan modification, your plan would need to provide for "adequate assurance payments" to the lender to show your sincerity about rectifying the large delinquency. Given what is at stake, you should hire a competent bankruptcy attorney. The legal fees can be financed through the chapter 13 plan.
    Answer Applies to: Oregon
    Replied: 1/15/2016
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I would need the details, but it is doubtful that the court/trustee would approve such a plan, I assume that if you are $400,000 in arrears there is no "equity" in the home and you are deeply under water. See a bankruptcy attorney before you make a mistake and compound you issues.
    Answer Applies to: Michigan
    Replied: 1/15/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You must either cure the arrears over 5 years and stay current going forward or do a loan modification. It may be that you cannot afford the home.
    Answer Applies to: Nevada
    Replied: 1/15/2016
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Consult a skilled bankruptcy lawyer. He or she may be able to negotiate some kind of different arrangement for catching up on the arrears. But in all candor, it would be very difficult to keep your home.
    Answer Applies to: Wisconsin
    Replied: 1/15/2016
    Scott Goldstein | Scott Goldstein
    Unfortunately, the answer is yes. In chapter 13 you must pay back the arrears and maintain your current mortgage payment. You could attempt to modify the mortgage in the case, but if that fails you're going to have to pay the $8400 a month.
    Answer Applies to: New Jersey
    Replied: 1/15/2016
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