I seem to write some of these posts out of frustration. Recently I had a client who needed to file bankruptcy due to a pending garnishment, but was behind on their home loan with Wells Fargo bank. The client could borrow money from his 401(k) plan to catch up, but the plan administrator would not release funds without proof that the foreclosure really was imminent.
We filed the case to stop the garnishment, and I wrote the law firm which regularly represents Wells Fargo and asked if they would provide a "hostile-gram" for the purpose of showing it to the 401(k) plan administrator to enable the client to borrow money to catch up.
Well, the law firm did that just fine, but about ten days later also filed a motion to lift stay, for which they demanded payment of $800.00 for their attorneys fees and costs.
The motion is pretty much pointless -- the client would have been discharged in 90 days, so the motion for relief from stay "released" Wells Fargo from the bankruptcy by a whole 30 days or so.
Because the client wants to keep their home, and has always wanted to keep his home, he may well be stuck with what amounts to an $800 late fee.
I'm not sure what the moral of the story may be (obviously, one is to not bank with Wells Fargo, but it was too late to change mortgage companies when the client came to see me) -- so maybe this is just a cautionary tale to try your very best to be current with y our mortgage company if you file a chapter 7 and wish to keep your home.
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