selling home near end of ch 13

[Rutwood]

I recently made my 43rd payment into my ch13 BK and am awaiting a discharge. The plan was confirmed for 43 payments. I really need to sell my house but do not have discharge papers yet. My mortgage was not included in the ch13. It was paid outside the plan. It was never late nor was it part of the repayment plan under the ch 13 BK. Is there any reason that I cannot proceed with trying to sell my home? I did order a title search recently and it did not mention anything about the BK and did not give any indication that there is any lien or anything other than a mortgage on the property I want to sell. I hope that the discharge papers will come soon, but I am told it can take a few months and they may not be here in time if I sell the house quickly. Could this hold up a closing? Is there some reason the title company would even know about the BK or have a problem with paying off the mortgage at closing if the mortgage was never part of the BK ? Any help anyone can offer would be appreciated. I've heard mixed messages on what the title insurance companies will do. I am in NY state and filed in 2004 before the new laws took effect. Thank you in advance for any help you can offer.

[chpxiii]

If you filed with an attorney, you may want to contact them. In the mean time, I hope someone can answer your question.

[Flamingo]

I recently made my 43rd payment into my ch13 BK and am awaiting a discharge. The plan was confirmed for 43 payments. I really need to sell my house but do not have discharge papers yet. My mortgage was not included in the ch13. It was paid outside the plan. It was never late nor was it part of the repayment plan under the ch 13 BK. Is there any reason that I cannot proceed with trying to sell my home? I did order a title search recently and it did not mention anything about the BK and did not give any indication that there is any lien or anything other than a mortgage on the property I want to sell. I hope that the discharge papers will come soon, but I am told it can take a few months and they may not be here in time if I sell the house quickly. Could this hold up a closing? Is there some reason the title company would even know about the BK or have a problem with paying off the mortgage at closing if the mortgage was never part of the BK ? Any help anyone can offer would be appreciated. I've heard mixed messages on what the title insurance companies will do. I am in NY state and filed in 2004 before the new laws took effect. Thank you in advance for any help you can offer.

Note you state your home was not included in the Plan but it was. Even though you paid your mortgage outside of the Plan, your mortgage company was notified and your account moved to their BK section. You may even find your mortgage with them listed on your credit reports as being in Chapter 13. Removing that information can be difficult (as we found out) because it was part of your Chapter 13 even though you made the payments outside the Plan. Until you are fully discharged, you would need Trustee permission to sell your home. I suggest talking to your attorney to find out what is the best move you can make at this point.

[southerncomfort]

Same situation here.

Rutwood, I am in the same siuation as you. I make the final payment in my plan in September 08, after which I would like to list my home for sale. My house payments were made outside the plan, were on time etc. Nevertheless, Flamingo is right--it is definitely "included" in the bankruptcy. I don't think any buyer/lender is going to allow the house to sell without proof of discharge.

Also, I had to call my mortgage company for some reason--and it took forever for me to be able to speak to someone becuase my account is in the bankruptcy section even though I pay directly outside of the plan. My mortgage company also sends the payment books to my attorney rather than me. Yesterday I ordered my FICO scores and I noted that the my mortgage lender is included in my credit reports as "included in Ch. 13 bankruptcy plan" . .

Unfortunately, seems like it could be several months following the final payment before you are able to do anything with your home.

[Rutwood]

I checked my credit report and the mortgage is not listed as being included in the BK. It just says the normal information. Other accounts do show the BK but not this mortgage. So If I understand you correctly my mortgage company would not accept a pay off on the loan unless they have the discharge papers? I was wondering how a buyer's lender would find out about the bankruptcy.

[woeisme]

You can ask the trustee to allow the sale, whether the BK has closed or not. They should be able to do the paperwork fairly quickly since they can see that you are done with your plan, just waiting to close. I've heard of people who sell mid-plan with trustee's permission, so getting permission at the end should be even easier. Call his office and see what needs to be done, you might find it's easier and quicker than you think.

[Flamingo]

I checked my credit report and the mortgage is not listed as being included in the BK. It just says the normal information. Other accounts do show the BK but not this mortgage. So If I understand you correctly my mortgage company would not accept a pay off on the loan unless they have the discharge papers? I was wondering how a buyer's lender would find out about the bankruptcy.

They would find out during the title search because bankruptcy filings are part of that search and your property and name would pop up. Same thing goes for judgments, liens, etc.

[Flamingo]

I did order a title search recently and it did not mention anything about the BK and did not give any indication that there is any lien or anything other than a mortgage on the property I want to sell. I hope that the discharge papers will come soon, but I am told it can take a few months and they may not be here in time if I sell the house quickly.

I see you "ordered" a title search - was this search done by an attorney or title insurance company? A full title search contains BK filings and other lien searches. Your name would appear in th BK search and a flag would be raised. Unless BK records are checked and other information, clear title cannot be given. Contact your attorney or Trustee's office for some paperwork or other information indicating that your Plan is complete and discharge papers forthcoming. It can take 90 days to get those papers. You should be fine if you cover yourself with that information.