Surrender AFTER Chap 13??????????
We have been paying on our Chapter 13 for 3 months. During this time we were also forced to seek additional legal help because my ex wanted custody of our daughters (I had and still have custody 
During the custody battle we remained current on Chap 13 to the Trustee however we had to borrow from Peter to pay Paul (Lawyer for Custody trial vs. 1st/2nd Mortgage payments.) I knew this was not good but keeping custody of our children was more important than our home.
Last week we were notified that our 1st Mortgage is requesting "relief from stay" for non-payment. Per the advice of our BK lawyer we plan to "surrender the property" before the "relief from stay" court date on the 18th of this month. We have put a down payment on a rental and plan to evacuate the premises BEFORE the 18th "relief from stay" court date. Will this be considered a wash? Will we be forced to pay the difference between what the house sells for and what we owe to 1st and 2nd mortgage? Will our BK payments be reduced since we will no longer be "making up" on previous past dues mortgage payments? If we leave before 18th relief from stay...can we take what we put into the home (light fixtures, fridge, dishwasher etc.?)? Since we are "surrendering" before the relief from stay court date is that considered a foreclosure and will that hurt us even more than a Chap 13? After leaving the home the only thing in our re-payment plan will be 2 automobiles, back taxes from one year and some furniture from a local company.
Oh the reason we are surrendering is.... not only can we "catch ourselves up" at this point but we have a ARM that adjust MONTHLY and our payment changes every 6 months. In the past YEAR our mortgage has gone up $350.00. We cannot refi due to the BK for at least 1 year so we thought surrendering and rent for a year or 2, get on track and then get another home?!?!?!?!??!!?
During the custody battle we remained current on Chap 13 to the Trustee however we had to borrow from Peter to pay Paul (Lawyer for Custody trial vs. 1st/2nd Mortgage payments.) I knew this was not good but keeping custody of our children was more important than our home. Last week we were notified that our 1st Mortgage is requesting "relief from stay" for non-payment. Per the advice of our BK lawyer we plan to "surrender the property" before the "relief from stay" court date on the 18th of this month. We have put a down payment on a rental and plan to evacuate the premises BEFORE the 18th "relief from stay" court date. Will this be considered a wash? Will we be forced to pay the difference between what the house sells for and what we owe to 1st and 2nd mortgage? Will our BK payments be reduced since we will no longer be "making up" on previous past dues mortgage payments? If we leave before 18th relief from stay...can we take what we put into the home (light fixtures, fridge, dishwasher etc.?)? Since we are "surrendering" before the relief from stay court date is that considered a foreclosure and will that hurt us even more than a Chap 13? After leaving the home the only thing in our re-payment plan will be 2 automobiles, back taxes from one year and some furniture from a local company.
Oh the reason we are surrendering is.... not only can we "catch ourselves up" at this point but we have a ARM that adjust MONTHLY and our payment changes every 6 months. In the past YEAR our mortgage has gone up $350.00. We cannot refi due to the BK for at least 1 year so we thought surrendering and rent for a year or 2, get on track and then get another home?!?!?!?!??!!?
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