Ch13 and House

[UsernameBKR]

We are planning on filing a ch 13, we live in TX and already retained a lawyer.

But before I our next meeting I have a quick question:

House payments are behind and we have a repayment plan with the lender but we are not going to make it. The next payment is due 13th of Sept and the funds are just not there. We were told not pay any more payments, and that the equity in the house will used to make those behind payments.

Well here is the catch when we bought our house in 06 it appraised at $200K well after some huge foundation issues we had our appraisal reduced to $141 k so now our loan is more than the appraisal amount.

So whats going to happen with our house because we want to keep it?

[rrockinggramma]

nothing will happen as long as you catch up the payments and stay current. Please realize that once you file a chapter 13 and put in the payments you are behind, the lender will probably not be very forgiving of future missed payments. Before you make this decision, analyze carefully the reasons why you are behind in your payments. If you have the money each month for the payment etc then keep the house. But if your income and outflow do not match, you might not be able to afford to keep it.

So many times people get so wrapped up in wanting to maintain the status quo that they don't really step back and look at the whole picture of their finances. Once you file your lifestyle WILL change. And all of a sudden things you thought were so important to have in your life just aren't.

So be realistic when making your decision.

[SleeplessInMich]

I wish I had known this forum before I filed C13 last Jan 2008. Back then I was so afraid of losing my house that I did not consider C7 when I could have easily done so as I was unemployed the previous year. When I finally found a job in Dec 07, I immediately contacted a lawyer to save my house. Today, my house is worth a third of what I originally paid for and most of my salary go to mortgage and C13 payments.