Hi, I’m St. Louis bankruptcy lawyer Frank Ledbetter. I’ve been a St. Louis bankruptcy attorney for 10 years now. I’ve helped hundreds of Missourians stop pending foreclosure sales on their homes and given them the chance to repay the amount they’re behind on to their mortgage company over up to 4 years in a Chapter 13 bankruptcy plan. Filing for relief in a Chapter 13 Bankruptcy case gives most homeowners the opportunity to stop a foreclosure sale. Under federal law, the Missouri foreclosure process must halt when the Chapter 13 bankruptcy case is filed in most instances. The only exception would be if the client had two or more bankruptcy cases dismissed within the past year.
The Chapter 13 bankruptcy client must resume making monthly mortgage payments to the mortgage lender and pay the past due mortgage amount in equal monthly installments through the client’s Chapter 13 Plan. However, many homeowners do not realize that Chapter 13 bankruptcy in addition to halting the foreclosure process in Missouri, also affords homeowners the opportunity to eliminate a second mortgage in a Chapter 13 bankruptcy case if the homeowner owes more on the first mortgage, even only a penny more, than the house is worth at the time the case is filed. The Chapter 13 client must obtain an appraisal on the client’s property and pay an additional filing fee for an action within the bankruptcy case to eliminate the second mortgage. No additional attorneys fees would apply for the action to eliminate the second mortgage.
Also, the Client must finish the Chapter 13 bankruptcy case to avoid the second mortgage lender’s lien returning and make the debt go away once and for all.
I have helped several Chapter 13 bankruptcy clients stop a foreclosure sale and subsequently eliminate a second mortgage on their houses.