2nd TD in Cronic chapter 13 BK-Balloon Due

[Tricia Lindsay]

I made a 2nd lien here in Los Angeles, CA in May 2008, Owner Occupied. The borrowers had sufficient income to qualify and lots of equity. One source of income was from a rental duplex, which they cashed out on 3 weeks after taking out my $50k 2nd. They began defaulting in 2009 and an NOS was filed sale to be conducted Jan. 2010. Mr. filed ch 13 on day of sale. It was dismissed due to non-feasibility. NOS refiled then Mrs. files ch 13, we object and somehow the court approves the plan. They juggled who they paid for the last 4 years, Trustee files 2 motions to dismiss, then reinstates. Finally, we and the first file an MFR due to non-payment April 2014. Ours is granted and the first enters into an adequate protection plan. We also note that the balloon is due May 2014 as well. NOS filed June, Mr. filed ch 13 again. The plan appears to not be feasible again and we object. In Mr's new plan, his attorney attempts to drag the 2nd out over 5 years. The court is not allowed to change the terms of a Note, which this will clearly do. Given the courts very lax approach to these debtors I'm concerned it will be granted.

Here's the question: Has anyone else experienced a bankruptcy court allowing a balloon payment to be amended into payments? Any advice or unique approaches to this nightmare?