Inherited property PLEASE HELP ME save family hom

[Shaun0316]

OK, so my mom passed away in 2022. I moved in with her about a year prior, and she was clearly getting sicker. She wound up having a stroke in her job, put her on short term disability. Her mortgage was being automatically withdrawn, and her work was still paying her mortgage covered, then she had a massive stroke in which they deemed her mentally incompetent of making her own decisions. Her work let her go. They put her on permanent disability. There was only a couple dollars short of making the whole PITI payment letter did we know, though in 2008 she took out a second mortgage with PNC. She winds up passing and I am working with the first mortgage company to begin making the correct payment and make up the shortage from the couple months she was sick Now somebody knocks on my door and asked me if I rent or own. It was a Tuesday afternoon I said it’s my mom‘s house. I just inherited it. He said well I hate to tell you this, but it is on the foreclosure sale list for Thursday morning. I called PNC immediately. I didn’t even know a second lean position. Mortgage company could file foreclosure over the wishes of the first mortgage company by the way second mortgage at that point was 10 grand first mortgage was 90 so let’s call it $100,000 in the house, but the house has not been updated or modernized since the early 90s so that was the process I was beginning when all of this hit me so basically I am forced to file a 13 they remove the house from the sale, but the address remained on the list for the day because they didn’t have time to get it off The house wound up selling for $54,000. This is a semi detached two bedroom two bath with an Inlaw suite in the basement very small home on the first floor which is all they consider. We’re talking 8 to 900 ft.². The bankruptcy (13) attorney says pnc has right to collect all interest the would have collected over life of loan and says trustee payment will be 400 a month and to keep paying 1st and car payment. That’s 400 a month for 1 year after year one trustee payment jumps to $1,400 plus I still have to pay the $1,050 1st. It’s simply not feasible so attorney keeps filing these motions to prolong this $400 payment. The real problem is when it was $1,400 I got a little behind on the 1st and the 1st has literally just been sold for the 7th time since her passing and everyone it’s the same story the 1st mtg company will not give me any info until I submit and they approve my successor in interest documents. This has taken months before. Anyway now I am behind on 1st current on trustee but lawyer is not answering or proactively trying to resolve. I am curious can I talk to a different 13 attorney, maybe write the judge and explain lawyers lack of proper explanation ? Can I file a new 13 and include the arrears or hire attorney to negotiate modification while I keep paying trustee on existing bk.  My daughter was raised by me alone (well with my mom) and they were very close. Now she is 19 and she says she wants her Mee Maw’s house eventually. I have asked the attorney  if I can sell it to a friend to get out from under the bk because other then the mtgs I had basically no debt bk was strictly done to save home as PNC was not at all willing to accept less the payment in full to stop foreclosure.  Please any and all advice or reccomendations to a modifying attorney or different 13 attorney given present attorneys lack of interest or follow up in case I would greatly appreciate it. In state of Maryland by the way 

[despritfreya]

While your post is disjointed, I think I get the picture.

1         Mom had 2 mortgages on property.

2         Mom was making payments on the 1st mortgage.

3         Mom fell behind on the 2nd mortgage.

4         Mom passed away (sorry for your loss).

5         You inherited the property not knowing that mom was behind on the 2nd.

6         2nd set a foreclosure.

7         You filed Chapter 13 to save the home.

8         Your Chapter 13 Plan was confirmed (approved) by the court.

9         You have since fallen behind in Plan and mortgage payments.

10       You want to know if you can modify the Plan thus fixing the missed payments and reducing the future monthly payments.

Assuming the above is close to correct, you should meet with your attorney - not just email or phone call or text – actually meet with him/her to go over this.  If you are already at 60 months there may not be much that can be done.  If you can no longer afford the home you may need to let it go.  HOWEVER – if you have equity in the home, maybe sell it. 

Since we do not know the ins-and-outs of the case we really cannot assist in this.  All I can say is that if my client can no longer afford the mortgages and Plan payments something has to give.

Des.

[JohnDeer]

On 9/11/2025 at 1:26 AM, Shaun0316 said:

I’m really sorry you’ve had to deal with all of this. From what you described, this is much more complicated than a simple mortgage problem, but there are still several things worth investigating before assuming you have to continue with the current arrangement.

In very simple terms, your mother had a first mortgage of roughly $90,000 and a second mortgage with PNC of roughly $10,000. When your mother became seriously ill, was placed on disability, and eventually passed away, the mortgage situation became complicated. You inherited the property and were trying to keep the first mortgage current, but you were apparently unaware that PNC had a second lien on the property.

The important thing to understand is that a second mortgage/lienholder can potentially pursue foreclosure even though there is a larger first mortgage ahead of it. The first mortgage being current does not necessarily prevent the second lienholder from enforcing its rights.

You then filed Chapter 13 to stop the foreclosure. The initial trustee payment was approximately $400 per month, but the plan later increased to approximately $1,400 per month, while you also had to keep paying the first mortgage of about $1,050. That puts you at roughly $2,450 per month between those two obligations, which you say is not financially feasible.

At this point, I would NOT recommend immediately filing another Chapter 13, transferring the house, or simply writing the bankruptcy judge yourself. The first thing I would recommend is getting a second opinion from a Maryland attorney who specifically handles BOTH Chapter 13 bankruptcy and mortgage foreclosure/loan modification.

You absolutely can speak with another Chapter 13 attorney while you already have an attorney. In fact, given the communication problems you've described, I think a second attorney should review the existing case before you make any major decision.

I would give the new attorney the entire bankruptcy file and ask them to review:

1. Your original Chapter 13 petition.

2. Your current and previous Chapter 13 plans.

3. The Chapter 13 trustee's accounting.

4. PNC's proof of claim.

5. The first mortgage company's proof of claim.

6. Any motions filed by PNC.

7. Any motions filed by the mortgage servicer.

8. The current amount of first-mortgage arrears.

9. The current amount owed on the PNC claim.

10. The current status of the bankruptcy.

11. The foreclosure history.

12. Your successor-in-interest documentation.

13. The deed and inheritance documents.

14. The current fair-market value of the house.

The key question is not simply "Can I file another bankruptcy?"

The better question is:

"Is there a way to modify my existing Chapter 13, resolve the mortgage arrears, negotiate the mortgage, or otherwise restructure the case so that keeping the house is actually financially feasible?"

A second attorney can determine whether modification of the existing Chapter 13 is possible and whether the current plan is being administered correctly.

I would also ask the attorney specifically about a mortgage modification. The first mortgage has apparently changed hands several times, and each new servicer has required successor-in-interest documentation before giving you information. That needs to be addressed formally. The attorney should help determine who currently owns the mortgage, who services it, exactly how much is owed, exactly how much you're behind, and what options exist for bringing the loan current or modifying it.

As for writing the bankruptcy judge: I would NOT send the judge a personal letter explaining that your attorney isn't responding. Bankruptcy judges generally cannot give you legal advice or resolve a pending matter through private communications. If something needs to be brought before the court, your attorney or replacement attorney should use the appropriate motion or filing.

Regarding filing another Chapter 13, that may or may not be possible or advisable depending on the status of your current case and any previous bankruptcy filings. There can be important issues involving the automatic stay, dismissal of the current case, confirmation, timing, and treatment of the mortgage arrears. So I would absolutely have another bankruptcy attorney analyze the existing case BEFORE filing anything new.

The possibility of selling the house is also something you should discuss with the new attorney.

A Chapter 13 debtor can potentially sell property, but you cannot simply sell the house privately and ignore the bankruptcy. Depending on the circumstances, the trustee and/or bankruptcy court may need to approve or be involved in the transaction.

Also, don't sell the property to a friend for an artificially low price just to get out from under the bankruptcy. That could create serious legal problems. If there is a legitimate buyer willing to pay fair market value, however, an attorney can determine whether a properly structured sale could pay off or resolve the mortgage obligations and bankruptcy.

I would also want an accurate valuation of the property. The fact that it was involved in a foreclosure sale for $54,000 does not automatically establish that $54,000 is its actual current market value. An appraisal or other reliable valuation could be very important, especially if you're considering selling it.

Because you are in Maryland, I would also contact Maryland Legal Aid's Foreclosure Legal Assistance Project. They specifically handle foreclosure, loan modifications, and personal bankruptcy and may be able to provide assistance if you qualify.

Maryland Legal Aid's Foreclosure Legal Assistance Project:
1-888-465-2468
https://www.mdlab.org/foreclosure-legal-assistance-project-flap/

You can also look for another Maryland bankruptcy attorney through the U.S. Bankruptcy Court for the District of Maryland.

The type of attorney you need is NOT simply a general financial advisor. This situation has significant legal issues. I would look specifically for a Maryland attorney who regularly handles:

• Chapter 13 bankruptcy
• Mortgage foreclosure defense
• Mortgage arrears
• Loan modifications
• Second mortgages/HELOCs
• Successor-in-interest issues
• Bankruptcy property sales

A financial professional could potentially help with budgeting and determining what monthly payment you can realistically afford, but the primary professional you need right now is an attorney who understands Chapter 13 AND mortgage/foreclosure law.

If I were in this situation, my immediate plan would be:

1. Do not file another bankruptcy yet.

2. Do not transfer or sell the house yet.

3. Do not send a private letter to the bankruptcy judge.

4. Get a complete copy of the existing bankruptcy docket and all claims/plans.

5. Contact a second Maryland Chapter 13/foreclosure attorney.

6. Have that attorney review the entire case.

7. Determine the exact current mortgage arrears and PNC balance.

8. Complete/resolve the successor-in-interest issue with the current first-mortgage servicer.

9. Ask whether the existing Chapter 13 can be modified.

10. Ask whether the first mortgage can be modified or otherwise brought current.

11. Ask whether selling the property through the bankruptcy would be a viable alternative.

12. Only after those options are analyzed should you decide whether to continue the current Chapter 13, modify it, sell the house, or consider another bankruptcy strategy.

Most importantly, don't let the fact that your current attorney hasn't been responsive make you think you have no options. The situation needs a fresh review by someone who can look at the actual bankruptcy docket, mortgage claims, and foreclosure documents rather than just giving you a general answer.

This is a situation where getting a second legal opinion is reasonable, and I would specifically look for someone experienced in both Maryland Chapter 13 cases and mortgage foreclosure/loan modification.