Can you file chapter 13 on a wrap mortgage in texas we have a a first and a second and behind on the second

A wrap around mortgage usually works like this example: A person sells a home and finances the sale by taking a purchase money mortgage of $100,000.00 with monthly payments of $800.00 per month. The seller still owes a mortgage with a balance of $60,000.00 and monthly payments of $500.00. The purchaser pays the seller $800.00 per month and from the $800.00, the seller pays the $500.00 per month. If that is what you have, you can put he arrears that you owe on your mortgage to the seller in the plan and pay the ongoing mortgage payments to the seller. However, if the seller is behind on his $500.00 mortgage payments that is probably going to cause a problem. If what you have is just a first and a second mortgage and you are the party that pays both of them, then you can restructure both in a chapter 13. If the final payment on the second mortgage comes due before your plan will be complete, you can strip down the mortgage and pay the equity above the first mortgage payoff balance if that is less than the amount owed on the second mortgage. You can also pay a Till Rate of interest, which will probably be between 4.25 and 5.5%, depending upon your court's position on the Till rate under he circumstances, and you can stretch the loan out to as much as 5 years. All of this can get complex. You really need to contact an experienced bankruptcy attorney that handles chapter 7 and chapter 13 cases. Most bankruptcy attorneys will meet with you at no charge for the initial appointment. You can use the "Find a Lawyer" link at the top of this page to search for an attorney.

Go meet with a local Chapter 13 bankruptcy lawyer ASAP. Your situation is too complicated to be analyzed on here. You should, however, have some options that the lawyer can explain after talking to you about your facts.

The first mortgage holder was the company who financed the home for your seller, and the second mortgage holder is an individual, who is also the seller. In your agreement with seller, you assumed the responsibility to pay the first (original) mortgage, along with the agreement to pay the second (new) mortgage. Is that correct? If so, you probably have a good chance of success as to the second (i.e., your seller probably couldn't stop you from curing the 7K arrearage as to the 2nd mortgage). However, the situation with the original mortgage may get complicated, even though you aren't behind on that payment. If there is a "due on sale" clause in note between first mortgage holder and seller, and if they first discover that there’s a wrap while you are in bankruptcy, they could call the loan due. But the good news is this: if original mortgage holder is happy with your assuming the mortgage, then your chances of success curing the 2nd mortgage arrearage increase substantially. I agree with my colleagues: you should obtain experienced legal counsel on this.