Due to some bad decision making, my parents filed Chapter 7 BK in 2000. Since then, they have had an even rougher time. CitiFinancial has started foreclosure proceedings against their home, which they have had for 34 years. They attempted to work out a payment plan to prevent this. The money order they sent to initiate this action was returned and basically they are trying to take my parents' house away. I advised them to file Chapter 13 to stop the foreclosure. They went to see a lawyer, the same lawyer I used 9 years ago to get information on the 13 filing. I have heard some really bad things about Citi and I don't want them to lose their home. Would this work?
I really don't know. I do know they have refinanced the house on at least one occasion. They pulled some equity out to remodel the house in the early 1990's and then again in 1994 to pay off bills. The house is probably worth around $80,000, but they have close to an acre of land with the property.
bk will freeze the foreclosure process but it will not stop it. the bank will just wait if there is a lot of equity, that's why you have to see a good bk attorney, who can delay foreclosure for 2 years by playing the bk game. real estate taxes have first position on the property then the bank that holds the mortgage, if there's plenty of equity the bank can afford to wait but the fees that bank's charge for the foreclosure process are very high. bank's usually don't want houses and will work with you, how far behind in their payments did they get ?
