Equity in home? [Archive] - Bankruptcy Forum

94nole

08-06-2004, 05:40 AM

In FL.

Homeowner approached me to buy her home. Equity is about $25k. She makes a payment each month to the court resulting from a BK two years ago. From the payment the court makes her mortgage payment along with other payments from the BK.

She just wants me to pay the balance of the mortgage and relieve her of the burden.

Any chance that the trustee would release the home from the BK?

Don't the other creditors have interest in the equity?

I just can't see how the court would allow me to have her equity.

rainmand

08-09-2004, 08:59 AM

Any chance that the trustee would release the home from the BK?

>Yes.

Don't the other creditors have interest in the equity?

>Yes.

I just can't see how the court would allow me to have her equity.

>They won't. Her equity will need to pay her creditors first. If she's on a 100% repayment plan, the Trustee will allow the sale as long as she's current on her payments and she can pull out enough equity to pay off the chapter 13 completely. If she's on a less than 100% plan, the Trustee will bring it up to a 100% repayment plan and she'll need to pay her creditors off completely. Any equity that's left over is hers to keep and she'll be able to conclude her chapter 13 early.



	Bankruptcy Forum > Before the Discharge > General Bankruptcy Talk > Equity in home? PDA Equity in home? 94nole 08-06-2004, 05:40 AM In FL. Homeowner approached me to buy her home. Equity is about $25k. She makes a payment each month to the court resulting from a BK two years ago. From the payment the court makes her mortgage payment along with other payments from the BK. She just wants me to pay the balance of the mortgage and relieve her of the burden. Any chance that the trustee would release the home from the BK? Don't the other creditors have interest in the equity? I just can't see how the court would allow me to have her equity. rainmand 08-09-2004, 08:59 AM Any chance that the trustee would release the home from the BK? >Yes. Don't the other creditors have interest in the equity? >Yes. I just can't see how the court would allow me to have her equity. >They won't. Her equity will need to pay her creditors first. If she's on a 100% repayment plan, the Trustee will allow the sale as long as she's current on her payments and she can pull out enough equity to pay off the chapter 13 completely. If she's on a less than 100% plan, the Trustee will bring it up to a 100% repayment plan and she'll need to pay her creditors off completely. Any equity that's left over is hers to keep and she'll be able to conclude her chapter 13 early.