New mortgage under old BK Law

[Sickofthe13]

We have $6k left to pay off and 19 payments to go. We would like to pay off the balance by selling our house. April is our 36 month mark. Has anybody gone through this, and how was the process?

[HHM]

The process is fairly straightforward, but takes more time then you think it should.

1. Send a letter to the trustee requesting a plan buyout
2. Wait for the trustee to send you the buyout amount (this takes some time)
3. Follow-up with the trustee to make sure they got you letter and request the buyout
4. When you sell your home, pay off the trustee.

[helpless]

Curious is it 36 months since the date of filing or after your 36th payment? We are in the same boat and would like to pay off early. Luckily our plan is only 40 months, so we can scrimp it together, just want out.

[Flamingo]

We bought out early from our Chapter 13 plan but via refinancing, but your process would probably mirror ours. Our process started by contacting our attorney who reviewd the situation to determine if we could actually buy out; the attorney will advise you what documents you will need to obtain (i.e., appraisal, whatever may apply in selling your house that may be needed) and will consult with the Trustee. If all is in order, the attorney and trustee TOGETHER file a Motion to the Court requesting you be authorized to buy out of your plan and sell your house, refinance, etc. There will probably be a cost for the Motion (ours was $400 which we had included on our settlement sheet). This process does take a while; in our case and for a refinancing, six months from start of contacting broker to final settlement and document signing.

Best of luck to you...

[Sickofthe13]

we actually filed in Feb 2005, first payment was April 2005. That is the date I am assuming. And with the summary report we get every 6 mos, the one we got December shows we had 22 mos to go at that time.