Foreclosure/foreclosure on 2nd & 3rd
currently scheduled to start chapter 13. I am in the process of modifying the loan with the first, I have been in trial since August and they approved, BK judge approved motion to accept. My problem is the 2nd and 3rd which were done by a broker friend's investment corp. We have been trying to file bk for the past 2 years with an attorney recommended by this broker friend, but the bk atty has been giving us bad advise all along and working with our former friend. He has dissolved his corp and has been trying to collect from us directly, but we have not agreed. Now he has filed Motion claiming that we have been trying to defraud him. He has also hired his friend to do an appraisal and raised the property value $100k more than what it's worth. we never received one statement nor past due notice from him. We had been paying every month for 3 years until we filed for BK and he has not given us any credit, claims we owe the original $110k. Our previous atty represented him in previous cases and we were not aware of this. Any advise?
The debt for the second and third should be taken care of by the trustee of the court. He can claim that you owe 110K but he won't get that from the bk court. He will get a portion of it. He will get a portion of your payment that you have agreed to pay as part of your chapter 13. Those mortgages should be stripped off of the house and thrown in to the debt pool to be taken care of. If you don't get it stripped off of the house you will still have to deal with him to be able to sell the house because he will have a lien against it. Ask your bk attorney if its being stripped or not at point blank. If not then I would hire a different attorney. Here is an example on how it is stripped. If you owe 300K on the first and the home is worth 298k. then all subsequent mortgages are stripped and put into the court. If its worth 305k then the liens stay and you will have to deal with him to sell the home anytime in the future.
IF you feel that this attorney has been giving you bad advice then you can report him to the Bar. The bar is the disciplinary counsel that keeps attorney's from doing unethical things. You have a rough road ahead of you and I wish you luck. I hope that I was able to help.