AboutRegan Shinski Expertise I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials BA - University of Minnesota
Question Daughter filed chapter 13. She has fallen behind in her mortgage payment by three months. THE BANK IS NOW THREATENING FORCLOSURE. Is there anything that can be done?
Answer The bank will likely file a motion with the bankruptcy court to remove the automatic stay. The stay is basically her protection through the bankruptcy court. The lender files with the court to remove that protection. If that is granted, they can begin common foreclosure through the laws of her state. Have they done this yet?
If they have not even filed for that stay yet, has she tried to negotiate a forebearance plan? This is basically a negotiated settlement where she pays an extra amount each month to get caught up.
If they have already filed for the stay but the hearing hasn't taken place yet, she needs to contact her attorney. Sometimes a court will not issue the stay - meaning lender cannot start foreclosure. This is to give the petitioner "one last chance." However, there is no guarantee the court will rule that way and even if they do, she still may have to pay the lender's attorney fees. Additionally, the time given is usually much shorter - 3-9 months. Can she pay those higher payments, including potential attorney fees, in that short period of time? You're looking at the current mortgage payment PLUS prorated back mortgage payments and possibly attorney and court fees.
If they have already been granted the stay, it is likely they have already begun foreclosure. You can try one last time to make a payment arrangement with the lender. The foreclosure laws vary widely by state. Some states give you opportunities at redemption. Some are more homeowner friendly than others. In some states it can take as little as 45 days to foreclose, others over a year. She needs to find out the foreclosure process for her state.
In some VERY rare cases, you can convert a chapter 13 to a chapter 7 and save the house. You clearly have to show a drop in income that now makes you qualify for chapter 7. There are equity issues that have to be met with the house and the lender may still choose to foreclose. Again, this is a rare situation, but you may want to discuss with your bankruptcy attorney. At the very least, if her financial situation has changed dramatically, converting to a chapter 7 may dismiss her chapter 13 debts and give more of a fresh start - even if it is without her home.
I hope she is also looking at this objectively. Why has she fallen behind? If the chapter 13 payment was totally discharged and she had to move, would that be better? Is that a better "fresh" start. I'm not saying one way or another, just asking. If so, ask your attorney about converting to a chapter 7 if she qualifies. Otherwise, look at the options above to try and keep the house.
