BK chapter 7 and foreclosure - need advice

[iluvthedusk]

I'm sure this issue has been addressed on this board numerous times. I'm posting because I have a specific question regarding the timeline.

 

Spouse and I filed Ch. 7 BK last month. Our 341 meeting is scheduled for this Friday. Mortgage hasn't been paid in exactly one year. It originally fell behind going back and forth with the bank (Nationstar) regarding a modification that they approved, then didn't, back and forth for months. When we originally met with our attorney, we advised him that our #1 priority was keeping the home. We are underwater with the house, but we have always been worried that if we let this house go, that it will be a long time if ever that we can buy a new one. In any case, our attorney advised us last week that he can work on a loan modification for us at an additional cost of $2500. This in addition to the $3,000 fee we paid him to file the BK. We were never informed that there would be additional (and hefty) charges for him to work on a modification for us. All along he's advised that he will see if they will modify the loan and if not, to then let it foreclose. Had I known it would have cost us additional money to the tune of $2500 to modify the loan, I might have just let him work on that alone and pursued the BK later.

 

In any case, now we are rethinking our plans after speaking with a couple of family members. The mortgage hasn't been paid in a year. About how long before will it be before were fully foreclosed on and basically put out of our home at this point? I live in NJ if that helps. And is there an exact timeframe that you are required to wait before you can purchase again or is there no set time? We fully plan to restore our credit and save to buy again. I just don't want to be stuck renting for years and years if we let the house go.

 

At this point, our attorney told us that we basically have to fend for ourselves with Nationstar or pay him $2500 to work on a modification. Please, please, please - any advice/knowledge would be well appreciated.

[luckydriver]

i have no first hand experience but id definitely want some guarantees if hes charging 2500. i know the mods arent fun, ive seen some things in the mortgage forum, but my gut tells me this guy isnt worth it

 

however hopefully someone else will chime in. i cannot see you paying 2500 so close to BK to do something you probably can do for yourself. and yes it will be stressful but at least your fate is in your hands and you could spend the 2500 and get zero from him.

 

g/l

[iluvthedusk]

You are gathering correct luckydriver. This attorney has been the absolute pits. Horrible personality. Never ever likes to speak with you directly. Most communication is via his paralegal. And he never once told us it would cost extra money to have him negotiate a modification for us. If I were to pay an attorney in order to modify the loan, it surely wouldn't be him. I'm just wondering if it's worth it or should I just let the house go. With a year of the mortgage not being paid, I don't know how much longer we have to save. This has turned into a huge mess.

[luckydriver]

well then one things for sure, you wouldnt pay this guy 2500! so we have that solved at least

 

sounds like you'd have better luck with the phone book and a dart. i hope you get charged less per message for the paralegal contact vs him directly

 

you seem to have had a foot in the door yourself. id call them every day and see what they can do. as you already noted, for it to be sold/foreclosed will be many more years. i think it's cheaper to work out a deal with you..i hope! i had a foreclosure 3 years across from me but thankfully the bank pays to cut the grass so i'm enjoying the privacy