What is a “Consent Order”?
By Brett Weiss, Maryland Bankruptcy Attorney on Aug 14, 2009 in Automatic Stay In Bankruptcy, Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy
You’ve fallen behind on your mortgage payments after your Chapter 13 case has been filed. The lender has filed a Motion to Lift Stay. Will you lose your home? Not necessarily, thanks to a Consent Order.
In many cases, the mortgage lender will give you one more change to get caught up. The way this is done is through a Consent Order. The Consent Order usually provides that you will:
(1) Resume making your regular monthly mortgage payments;
(2) Pay the post-petition arrearages (the payments that you missed after your case was filed) over 3-6 months; and
(3) Pay the mortgage company’s attorney’s fees (usually $500-$800) during this same time period.
So long as these payments are made, you should be fine. If not, the Consent Order will provide that the lender can proceed with the foreclosure.
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