Welcome to my little corner of blogland! This is the only sane spot I can come in my crazy life! :) Here I share my sometimes funny sometimes NOT-day to day insanity I call my life, along with my sweet wooly hubby & all our boys :)

If you have built castles in the air, your work need not be lost; there is where they should be.
Now put foundations under them.

Henry David Thoreau

Saturday, October 18, 2008

Bankruptcy woes, any input?

Ok first off sorry this is so long in advance, but here is the deal. Basically our bankruptcy is almost done. Its due to be discharged as of Oct. 28. But we didn't know that. Yesterday we went to the finance company where we financed our truck through, and where we are still totally caught up and current on the payment, never have let it get behind. They called us last week said we were to a point where we could redo our loan and borrow more money. Well we are needing to buy another vehicle, something gas efficient and reliable for when Jordan goes to StL etc. We don't have anything right now that fits that bill. So while we were there we were talking about our bankruptcy to the lady we always deal with there and we were telling her that we were having trouble finding somewhere to move to, didn't know what we were going to do etc, she looked Danny in the eye and said CALL YOUR MORTGAGE COMPANY, I guarantee you they will deal with you at this point, they don't want another foreclosed house. So we came home and called, we've tried to call several other times and for whatever reason could never get a person. SO we get a person! Basically, long story short, our mortgage co. DID offer to deal, sent the offer of 6.9 to our lawyer who never disclosed it to us. Now, later in the game, when asked if they could do us even better than that offered 5.25%. That is a lower percentage than our original mortgage, which I believe was 5.9.

SO Danny calls the lawyer which the mort. co. said to do, to ask for a motion for a continuation on our discharge. The lawyer talks to Danny all seems ok, well then Danny left and the lawyer called back (this guy is a sexist butthead I can't stand him anyway) and basically was telling me that in his opinion, we need to walk away cleanly, let the discharge go through, and then try to buy the house back just like a new loan. I said well..first off I doubt very seriously they'd process us through as a new loan. He said why not I said because if they look at us as a new loan we've got a very very fresh bankruptcy etc. I said secondly IF THEY DID give us a 'new' loan there is no way they'd offer us such a reduced %. I said not only that but a 'new' loan is going to come at a large cost to us, new appraisal, closing costs etc. The mort. co. just wants to basically reaffirm our loan, pick up where we left off only at a much lower % and a much lower payment. He said of course they do thats the easiest thing on their part to do. SO then he got all snooty and said well just talk to Danny but there is no way to get this done before the discharge date, so the bankruptcy will close and you'll be paying $200-300 more to reopen it.

SO, I called my friend who is my bankruptcy guru who said FIRST OF ALL call the trustee on Mon. and tell him that your mort. co. offered to reaffirm for 6.9 and your lawyer never disclosed that to you. That alone should be enough to continue the discharge. She said also to tell the trustee that you and your mort. co. worked out a deal amongst your selves (since lawyer won't help you) and what do you do to get this worked out before the 28th.

PRAY FOR US we truly feel this is God's leading, that this is why all doors were closed to us in finding a home, in our town or not. Please pray for us to be patient and thankful no matter what the outcome :)

xoxo melzie


Aunt Jenny said...

Oh Mel...I will sure be praying for you. It would be awesome it you can stay in your home. Lawyers!!!!!!!! Not to be trusted in many cases!! We had a hard time with my husband's lawyer when he had his back surgery in 2001...workers comp and all...jeesh!! He lied to us and led us the wrong way SO many times.
Hang in there!!!

Mindy said...

I'll be praying, too. Geez, that lawyer...seems like he just wants to avoid extra work on your part. If you were to get the home as a new loan, I can pretty much guarantee you won't get it at 5.25%, if they approve you at all with a bankruptcy on your credit report. I'm not an expert in this stuff, but I also know God can work miracles, and this is one of those cases where I think He will. :)


I agree,that lawyer seems like he wants to avoid work,PERIOD!:(
I am so sorry!
I am so glad that somebody said something to you,I do believe God has a big hand on this.
I do not think we'll be in this recession for another 8 yrs.((HUGS)))