What to do about a home equity loan and Chapter 13?

My father willed me property, which includes a home equity loan in his name. I filed Chapter 13 and the payment for the loan is included in my claims. Am I protected from foreclosure for the 3 years I am in bankruptcy. The home is in probate .

Asked on September 8, 2012 under Bankruptcy Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Until the lender that is presumably secured with a mortgage or a trust deed recorded on your father's former property files a motion for leave from the automatic stay under 11 U.S.C. section 362 with respect to your bankruptcy this lender will not be able to foreclose on this property assuming title to the property is in your name. If the home is in probate and not in your name, the lender who has a secured home equity loan on this property can foreclose upon it.

I suggest that you may wish to speak with a real estate attorney as to what can be done to protect this asset from a foreclosure.


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