Adding House To Plan? (Tennessee)

[banannas]

When we first filed our chapter 13 we kept out our house and 2ND mortgage.
Our A/C went out and we needed to have it replaced. Now we have falling behind and are seriously thinking of adding both of these. Were sure this is going to change our payment drastically but don't really have any other options, Does anyone know if this is possible? Thanks

[mathom1]

Bananas,
Yes, it is possible to add/surrender the house. I had the same question..check my posting "9 months into a chap 13..."

[banannas]

Mathom1-Did you surrender the house or add it to your plan?

[mathom1]

Nanners,
Initially, we were set on keeping the house. But I called my atty last week and asked about surrendering the house. He said no problem, stop making payments...save that money for a rental (1st/last and a security deposit)
M

[banannas]

What exactly is Lien stripping?

[mathom1]

From a posting by HMM (moderator)

1. You can only lien strip in a chapter 13
2. There cannot even be 1 penny of value in the house that would touch the 2nd mortgage.

So, for example, if your house is worth $250,000, with two mortgages: 1st $265,000, 2nd $45,000, you can lien strip the 2nd. However, if that house is worth $266,000, you cannot lien strip. Lien strips are ALL OR NOTHING, so even if the house is worth 265,002, you could not lien strip the 2nd.

[banannas]

So what exactly does a Lien strip do. We are currently in our 2nd of a 5 year plan.