Anyone know the answer?

[helpless]

We will complete our 13 in July/August. Since filing, husband changed jobs, and yes, I did notify the attorney when he changed, and travels 70 miles each way to work. My son will graduate from hs in May and daughter will start hs in August. Ideally, we would love to sell house and move closer to work, but right now in Ohio there is no way to sell the house and break even. My question is can you walk away from a house in a 13 like you can in a 7? We have never been behind in our mortgage, but don't know how to continue with the price of gas. Any suggestions? When time gets closer, I will ask atty. I just like laying low. THanks.

[Flamingo]

We will complete our 13 in July/August. Since filing, husband changed jobs, and yes, I did notify the attorney when he changed, and travels 70 miles each way to work. My son will graduate from hs in May and daughter will start hs in August. Ideally, we would love to sell house and move closer to work, but right now in Ohio there is no way to sell the house and break even. My question is can you walk away from a house in a 13 like you can in a 7? We have never been behind in our mortgage, but don't know how to continue with the price of gas. Any suggestions? When time gets closer, I will ask atty. I just like laying low. THanks.

If you walk away from your house during your Plan you risk having your Chapter 13 dismissed. Your mortgage is part of your Plan even if you pay it outside of the Plan. Before you even consider doing that, talk to your attorney immediately since it appears you are having difficulty meeting your mortgage payments. Anytime one has difficulty making the Plan or any payments during their Chapter 13, immediately contact your attorney because having your Plan dismissed is the last thing you want to occur especially so close to the end of yours. Best of luck to you.

[helpless]

Sorry if I worded that wrong, right now I am not having difficulty making the payment. Even when our 13 is discharged, if the price of gas continues to climb up to $4 a gallon like some speculate, I don't want to continue to live 70 miles away, but there is no way we could sell our house right now. Foreclosures are all around us. I just wanted to know if I could walk away from my house like people can in a 7 and not have any consequences? Thanks.

[wayne-o]

I dont think you can walk away like you can in a 7. If you were to walk away in the middle and your house is sold for less than what you owe, the difference would be considered new debt and not covered in your 13 filing.

[Flamingo]

Sorry if I worded that wrong, right now I am not having difficulty making the payment. Even when our 13 is discharged, if the price of gas continues to climb up to $4 a gallon like some speculate, I don't want to continue to live 70 miles away, but there is no way we could sell our house right now. Foreclosures are all around us. I just wanted to know if I could walk away from my house like people can in a 7 and not have any consequences? Thanks.

After you are discharged from your Plan, yes; but if you plan to do it before your discharge, talk to your attorney. In any event, I would still talk to your attorney about it if you plan to do it after discharge to ensure there is not any sort of timeframe involved after your discharge where it could be an issue.

I commute 60 miles one way to my job so I understand where you are coming from. I worked out a schedule with my boss where I can telecommute one or two days from home every two weeks - I am able to work from home and log into our system at work,. With that and a cell phone I can handle quite a bit. You should see if you are able to work something out like that with your job or if you can work out something extra into your salary due to the rise in cost of gas. Many people are now working from home if they can and have adjusted schedules due to that. The cost of gas and electricity is hurting many so you have to make adjustments in other areas of your life to get by or find a way to cover the additional costs.

[rrockinggramma]

You can walk away. However by the time the foreclosure happens etc and the deficiency balance is determined, your chapter 13 will be almost done, close to discharge. So you might want to check it out with the attorney on the in's and out's of how that might be done. But you listed your home on the petition, and yes I believe you can give it back.

[helpless]

Thanks all. I do not have any desire to walk away just yet. I was just wondering for in the future. I will ask attorney once I am done with my final payment. It is really hard. 3200 sq ft house $158,000 @ 5.25 interest. I don't know if I will get that again anytime soon. Darn gas prices!!

[jgarton244]

Thanks all. I do not have any desire to walk away just yet. I was just wondering for in the future. I will ask attorney once I am done with my final payment. It is really hard. 3200 sq ft house $158,000 @ 5.25 interest. I don't know if I will get that again anytime soon. Darn gas prices!!

Well, that is areally good rate. You will not get that for a while, especially after coming out of a BK 13 plan. Your mortgage payments are roughly $875 month? If you are in a 25% tax bracket, and for estimated purposes, $800 month is interest, you are reducing your income taxes, or monthly rate by $200. Your net monthly payment is around $675. Assumption again, property taxes are $200 month. In 25% tax bracket, with deducting property taxes, your net tax payment per month is $150. Net Mortgage and taxes at least for the next few years, approximately $825 month. Add $100 month insurance net monthly payments are $925, less savings on taxes and interest on state taxes.

The question would be, what could you get in rental for $925 month, with renters insurance. Seems pretty low for what you have. Of course, home repairs and upkeep are an expense you would not have if you rented. You can get an FHA mortgage after a BK 13, if you were on time with all plan payments, and keep your current mortgage up to date with payments. But, it would be about 7.5% plus mortgage insurance. If you financed closing costs on an FHA, you could buy a home around $115,000 and have the same payments you currently have.

Just some numbers to think about. No easy answer. Going into foreclosure would prevent you from getting a new mortgage for at least two years after BK 13 is finished, if FHA. If you rent, you lose your tax advantages with the deductions.

Whatever you decide, think it over carefully, talk to your attorney, and run the numbers for net results on each possible situation being considered.

[helpless]

payment is actually $1325 including insurance taxes PMI. Original loan was $167, we owe $158,000 right now. It is a lot to think about. Thanks for the advice.