Surrender home in Chp 13

[yak411]

I filed Chp 13 a few months back. I owe more than my house is worth and I do not think that that will change within the next few years because of the market. I was told by my attorney at the time that I could surrender the home anytime that I got ready while in Chp 13 and it would be treated like the other debts. I did not file chp 7 at the time because I did not qualify and I did not surrender the home at the time of filing because I had nowhere to go. I am now seriously considering the surrender. I pay a VERY LARGE mortgage and I am not making a dent in the amount owed. It is becoming more and more difficult to make the mortgage payment. If I surrender the home will this be the same as a foreclosure? Is the process the same as a foreclosure or is it different? Will this be listed as a foreclosure on my credit report? Please help with these questions. My attorney is saying that it is not a foreclosure but the lender is saying that it is.

[Flamingo]

Did you ask your attorney if you can convert your Chapter 13 to a 7 at this time? Or do you still not qualify with the changes in status you mention? If you still do not qualify and let the house go, what your attorney is stating is that you will be responsible during your Plan for the amount that you will probably still owe on the house after it is taken by the bank and I am assuming your Plan will be modified to have that taken into account for payback. I would corner your attorney for some more detailed information.

[yak411]

surrender home in chapter 13

No I still do not qualify for the 7 because of income. I am only paying back at 10% and the plan will be modified to include the amount owed on the house after the sale. Is this still considered a foreclosure if I surrender the house?

[car67]

No its not a foreclosure. Its a surrendor. Write a detailed letter stating the facts and send copies to all three credit agencies with statement of your position. Is the best you can hope for.

[howie]

I have just started my BR and am going to surrender my home. I will be in a 100% payback yet my atty told me I most likely will not have to pay anything back to the first or second mortgage. I am also way upside down in the home so it will not sell for what I owe. I am hoping he is correct and I won't have to pay anything when I surrender.

[yak411]

Howie, Please check into that. I am in VA and my attorney told me that I will have to payback some owed but it should not be much. I am only paying back at 10% so yours may be different. Do you know if this will indicate foreclosure on my credit report when surrendered. The bankruptcy has hurt me bad enough!

[howie]

It is my understanding (and I could be wrong) that it should show up as included in bankruptcy. If it does not, I believe contacting the credit reporting companies should take care of it. I guess I will find out as I get further along. My atty had told me he has done over 8000 cases and only had 2 that required to pay something on the house after surrendering. With my luck I will probably be #3. Hopefully if I do, the hit won't be too great. Either way I want to get out of the upside home and start over. I don't want to have to do this again.

[yak411]

I understand completely. I want out of this house too but I am having a hard time finding something to rent with my credit. I need to stay in the school district for my kids. Wish I had surrendered when I filed before it showed on my report. Most places I call are refusing to deal with anyone in bankruptcy so I am holding on until I can get something. I am just so worried. Not sleeping well at night.