Will pay >DOUBLE to file Chapt. 11, as an individual, than the cost of filing Chapt. 7 or 13!!!
SYNOPSIS: Since my husband's credit score had been ruined due to his (mostly COGNITIVE) illness, our bank (back in 2004) told me that I can apply for a mortgage using MY score with MY HUSBAND'S (decent) disability income, as long as the income was directly deposited into a JOINT account (btw, the checks are written "to HIM in c/o ME, as general power of attorney").*
Long after closing on this CONVENTIONAL mortgage loan, after having put down 20% and paying FULL closing costs, I found out that our bank turned the loan into an FHA loan WITHOUT OUR KNOWLEDGE! At the time, I didn't think too much about it...but later on, I tried refinancing (since my husband's income was dramatically lowered due to him becoming a certain age), then after they procrastinated, they finally answered me with a DENIAL based on a BOGUS appraisal (which I also realized in retrospect)!
Later, I asked about a modification, and was verbally told by our lender/bank that I most probably WOULDN'T be approved since "banking laws have changed, and they NO LONGER allow using one person's credit with another person's income" (as if it was MY idea to set up the mortgage that way in the first place...or as if the "new" banking laws were put in place to punish ME for having done something WRONG)!!! IMPORTANT NOTE: My mortgage had been paid ON TIME EVERY SINGLE MONTH FOR SEVEN YEARS (prior to me stopping my payments)!!!
I just thought you SHOULD KNOW how UNETHICAL our "smalltown" bank has been!!!
*Those accounts of ours have since been changed...my husband, over a year ago (being that he was EXTREMELY ANGRY @ our bank) closed our accounts there, & opened up new accounts in another bank, IN HIS NAME ONLY (because he had RUSHED, w/out even asking me first)! NOW, since those bank accounts are STILL set up that way, I figure, we can use that to our advantage by having ME file Chapter 11! Btw, I have yet to turn in any modification paperwork to them as of yet...BUT, I NEED TO very soon! Would also like to know how much you would charge to do this. THANK YOU.
1 Answer from Attorneys
I spoke with you for over 45 minutes, free of charge, a couple months ago. It's disappointing that you completely ignored my advice and are proposing these absurd ideas. You can't file a ch.11 and even if you could it would make absolutely no sense. You need a professional to help you seek a modification, defend the foreclosure or help you with a short sale.
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