Expert: Dick Dennis - 5/9/2009

Question
medically destressed debtor unable to make payments while waiting for disability retirement pay to be put in place.  First trust deed of 630,000-foreclosure proceedings, filed chapter 13 to stay sale. while in bk , bk attorney referred me to aggressive subprime lender promising a solution by tapping equity to dismiss from bk with a 12.5 % interest only loan and held funds in impound account to make in theory 18 months of "timely" payments, consolidate debt and "improve" my credit. 18 months later when I went to re-fi into a better loan, I discovered the 2nd trust deed lender had failed #1 to bring the first current at the time of bk dismissal and #2 under paid first by $50. every month in that 18 month period resulting in 18 month history of rolling lates-both driving my credit down further.  2nd foreclosed and as an exit strategy referred me to another private investor within the same private lending servicing clientele, who offerred another 2nd increasing the equity tapping now to $800,000 paying off only the last 2nd trust deed and holding funds for 6 months of payments.  I failed on that loan when the impound was exhausted due to further delays in my disability retirement pay.  at the same time when the 2nd threatened to foreclose again-my sister was dying of cancer at home with me.  the lender offerred another "rescue" of cross collateralizing my vehicles with another 6 months of payments held in another impound to buy me enough time to help her die.  6 months later I still did not have my income in place and they foreclosed.  2 days before the auction, I filed bk again-this time because of the high equity stripping loan limits, first $630,000 and the second 900,000, I was forced to file an expensive chapter 11.  My attorney was not available to me-he subbed out to another attorney who was in a serious car accident at the time of my hearing and although the judge was empathetic, I depleted family savings to make $14,000 adequate protection payments because my retirement was still not in place.  It was stated that I would make 1 payment then renegotiate my debt repayment plan.  While my attorney was injured-the second's counsel moved for continued adequate protection payments at $14,000 a mo. which I could not do.  This was also at the beginning of the market decline.  My home had not equity, the second moved for relief from stay, it was granted-they effected a foreclosure sale under thier deed of trust and aggressively harrassed me to move out-i saved all of the harrassing telephone calls, engaging my prejudice neighbors (also who are realtors) who had been civilly harrassing me for the past several years due to my inability to fully care for my property by finishing construction I had begun -who repeatedly called the sherriffs to my home falsly saying that I was a burgular in a foreclosed property and finally  filed an unlawful detainer action against me which they dropped after a heart pounding move out of myself and my 80 year old parents.  The bk judge recommended and approved my voluntary dissmissal from bk as they had taken possession of the property and I had no resources or physical strength to fight them with any longer.  1 month after I moved out, my retirement pay began and I continue to be repeatedly contacted by my first who claims that voluntary dissmissal from bk "reinstated" my rights with them, although my bk attorney swears that the second had extinguished all of my rights under thier deed of trust sale.  My first wants to work with me, the second filed a 100% ownership title with the county-without informing the first and without keeping the first current or paying taxes insurance etc.  Now my first as a participating member in Obama's Stimulus plan-Stream lined loan mod and make home affordable act, are willing to consider my verifiable income and renegotiate my loan under the uniform guidelines.  The second has not cared for my home, not fixing leaks in the roof , letting the landscaping die and general disrepair.  A friend took my parents in and I am living in a trailer.  Now that I have income, I would love to pull my family back together in our previous home.  Although the first has now moved to foreclose, they are still willing to help me.  I have engaged a "loan modfier" to try to help.  The value of my home dropped from 2.4 million in 2006 to under $600,000 now.  I still have items in the property, pay the utilities and insurance and still have hope.  Is there any possible legal recourse, under predatory lending practices, refiling bk with an adversary proceeding, potential lien stripping within or without bk, wrongful foreclosure practices, anything? or should I stay in my trailer-continue to pay my parents rent until they or I die.  I lost more than my home, I lost my dream of providing for my parents and embracing a community that I worked hard to retire in.  Please respond, I cannot seem to get any straight answers from anyone.  I recognize these are horrifically confusing times and the info out there is not clear and sadly I know I am amongst thounsands of others who are forced to leave thier homes and further dismantle America.  Thank you for your time.

Answer
As much as I would like to help, Katey, you desperately need a good REAL ESTATE and/or ESTATE attorney to start to put everything back the way it should have been. This has morphed into strictly a law case. I can see in at least two areas in your story that you've been scammed, especially the person who represented him/herself as a loan modifier and you paid anything up front. Yes, attorneys are thieves, too. So, what you need to do is to contact the Bar Association of your county and ask for three good attorneys' names. Yes, it is going to cost you, but a good attorney should be able to get your money back. I do wish you well, Katey.

Dick Dennis
dixiedee13@aol.com