went bankrupt 7 yrs ago, been paying on modular and land ever since to keep the property. Husband s work closed a month ago. Were 2 mths behind, but with the interest and lates charges they are charging us its up to 4575.00 now. There following the contract that was in force before the banruptcy. We found out that we have the title to the modular free and clear. Finance co. never combined home with land like michigan law requires. So the deed just shows the land only. Do I have some kind of leg to stand on.
Can they? Maybe. If you are behind on payments, the lender does have the right to begin foreclosure. However, even at its speediest, a foreclosure will take a minimum of 14 days just to get the court order. If you respond timely, you get at least 21 days.
However, this time-phrame is more theoretical than actual. Home foreclosures take a lot of time, and some banks go years during the foreclosure process without evicting. So to predict what will actually happen is very difficult.
You can also call the bank and try to work out a deal. I do suggest finding work asap and if you can keep up with your payments and negotiate a repayment of the mortgage - most banks will prefer to avoid foreclosure since it costs more.
Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale negotiations, and estate planning in Whatcom, Skagit, Snohomish, King and Pierce counties. The response does not constitute specific legal advice, which would require a full inquiry by the attorney into the complete background of the facts and circumstances surrounding this matter; rather, it is intended to be general legal information based on the limited information provided by the inquirer; it This response also does not constitute the establishment of an attorney-client relationship, which can only be established after a conflict of interest evaluation is completed, your case is accepted, and a fee agreement is signed. Johnson Legal Group, PLLC
Chapter 11 Bankruptcy Attorney
You will need to confirm this with a MI lawyer as the way different states handle title issues can vary, but the general rule is that they must have properly perfected their lien on your modular prior to the bankruptcy. Otherwise it may well be that they can no longer place a lien on the modular based upon the loan documents.
But there is a rub on that point: they may not (and again -- that's "may". Talk to a MI lawyer about this) based upon the loan documents, but if there is a deficiency (in otherwords, if they sell the land but the price is not enough to pay their claim) then they can get a judgment -- and that judgment may be able to work to take the modular.
The fact that they may not have a clam against the modular may be a bass for bringing them to the table to negotiate -- but you will need to get your income on track again in order to be able to offer them something, since all they really want are payments.
Ultimately you can consider filing a Chapter 13 to save the property if it has not been sold by the time you earn income again (income is required), but based on the numbers you are talking about you would be well served to work this out with them outside of bankruptcy.
Chapter 7 Bankruptcy Attorney
Your question is somewhat difficult to understand. Fortunately, the law provides for a relatively simple way of resolving this issue IF you are able to make the payments for the home. You can file a Chapter 13 Bankruptcy. Chapter 13 would stop foreclosure and eviction, but requires that you create a repayment plan that makes the regular mortgage payments, as well as a bit extra to catch up the arrears over time. It is not a perfect solution because you would still have to make payments, but it is an option that is available to people who want to keep their property but are not able to come up with a large lump sum all at once.
Generally speaking, if your goal is to keep the property, you must be able to pay for it. There is no mechanism in the law (that I am aware of, at least) that allows a person to unilaterally keep their home, despite a mortgage, while not paying that mortgage. If there were, we would all be using it.
I am not certain this is the answer you were looking for. As I said, I have not understood your question perfectly. If you wish, you may comment after this response to clarify your meaning and thereby give the AVVO community a better opportunity to assist you.