Question: I am in the process of filing for bankruptcy. I am filing chapter 13 so I can have my second mortgage, which is a line of credit through Bank of America, dismissed. My attorney just called and said that because my first mortgage was obtained after my HELOC, only because we refinanced, that the court may deem the HELOC as my first mortgage. Is this possible?
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Lien priority is based on when things get recorded. It is possible during the re-financing period if you used different lenders that if the (HELOC) was recorded 1st, it would be in first position. And anything recorded after it would be in 2nd, 3rd, and so on.
HELP!! My home is about to be sold tomorrow. The man I had helping me I cannot get a hold of. The plan is to file a chapter 13 by tomorrow. Will that help me? I am very scarred and haven’t slept all night wondering if this guy is really on my team! I am in this mess because a company SFG Bancorp, got me in this payment that I had to take to avoid foreclosure 10 months ago. Now SFG calls me up and says the guy was fired and can they help me!! I put all of my faith in this person that I can now not get ahold of, maybe just because it was Sunday, yesterday, that I tried to get ahold of and maybe he was busy. I will try my hardest to get him today. If not I am screwed!!! As for SFG, I think they just want another loan. To top it off, the bank said I was 3 months behind, then after I paid the 3 months, they said I was still 3 months behind from last year, which is impossible…wouldn’t I have been foreclosed last year? The records they sent me I cannot understand and neither can anyone else. I think I am being frauded and I have no one to turn to because I don’t have money. What can I do to stop this foreclosure? I am a real mess just thinking of this horrible thing that has happened to me and my family. Please, can anyone really help me? Or is it a lost cause?
Roberta,
Before you find out anything else about the payments, mortgage fraud, etc., you need to get the foreclosure sale stopped any way possible.
If the court accepts the Chapter 13 filing, you may be able to put the entire foreclosure process on hold. Hopefully you are able to do that and gain some additional time.
Otherwise, depending on what state you live in, you may have a redemption period after the sale. This period would give you additional time even after the sale to remain in the property and sell/refinance the home. Check your state laws on the redemption period to see if one applies.
Good luck, hopefully you are able to find some solution to the foreclosure.