Selling home in ch13

[billybob37]

I will be filing 13 soon. I have been trying to sell my home for a while now but no luck. If I sell it while in 13 will the back payments that were put into the bk be taken out of the bk and be paid back from the sale or will the arrears continue to be paid throughout the bk? I hope that makes sense.

[Flamingo]

I will be filing 13 soon. I have been trying to sell my home for a while now but no luck. If I sell it while in 13 will the back payments that were put into the bk be taken out of the bk and be paid back from the sale or will the arrears continue to be paid throughout the bk? I hope that makes sense.

Have you discussed this with your attorney? When you file Chapter 13, it is filed on amounts owed as of the date of filing. If you owed back payments prior to that date and they are included in your Plan, they are your responsibility as part of the plan. Any mortgage payments after the filing date will either be paid by you directly to your mortgage company or could be paid by the Trustee. So if you file Chapter 13 and include your late payments but fail to keep paying your mortgage payments if you make them directly, your Plan can be dismissed. I am assuming you will have permission from your trustee to sell your house when you file. In order to sell your house while in Chapter 13, you must have Trustee permission. From your posting, it appears you have not yet spoken to an attorney. I would suggest speaking to one right away to get the correct advice you need for your housing situation. Best of luck to you.

[MOMof3]

From what I understood when I asked about selling our home, the arrears would be settled in the closing of the home as long as their was enough proceed from the sale to cover it. Basically, we were told that we could sell our house, pay it off completely including arrears AND still keep the exempt equity. Anything over the "exempt" portion of our equity would become property of the trustee to distribute to creditors. We still have more questions for our attorney regarding this, but we are waiting until after the holidays.

Good Luck!