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A Chapter 13 bankruptcy offers an automatic temporary stay of a foreclosure until the plan is approved or the case is dismissed. Most lenders/servicers will automatically file a motion for relief from the stay so they can proceed with the foreclosure, operating on the theory that less than a third of Chapter 13 cases wind up with a successful discharge.
Pay close attention to their proof of claim. If the amounts are in dispute, your response is to challenge their proof of claim. At that point, whoever has the best documentation will probably win.
Also note that after the 3 or 5 year plan completes, the servicer may try to come back and put the originally claimed amounts back on the loan after the discharge. That's a no-no. Any amounts discharged (including those in the proof of claim that were denied) legally don't exist.
Bankruptcy courts have sanctioned servicers and their attorneys for playing games. And the fact that the foreclosure mills handle so many cases they are bound to screw up can work in your favor if you keep on your toes.
One other point, in a 13, attorney's fees can be part of the plan, so you don't have a large cash outlay up front. But if you do get an attorney to do the filing, make sure they know and understand what is known as "predatory servicing."
If you don't mind, who is servicing the loan? There are a handful of them who are in a constant state of civil litigation and are well known in the legal community as bad actors. Some law firms specialize in making their lives miserable.
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