Surrendering my Home under 13

[HangingOn]

Hi Everyone,

My husband claimed Chapter 13 last year. We currently own a home together
that was not included. Now we are faced with the reality that we cannot
afford to keep the home.

We have 2 mortgages on the home with the same bank and no equity. There are homes on my street for sale that are brand new with lifetime warranties that are not selling. Can we surrender our home or do a deed in lieu? Does this have to be approved by the trustee since the home isn't included and I'm not on the plan?

Thanks for any help!

[Flamingo]

Since from your posting I gather the house is in both names, contact the attorney who is handling your husband's Chapter 13.

[lawforever]

Remember there is a rise of deficiency judgment against home owners who are short selling or doing deed in lieu of foreclosure. Banks are getting what they can. You may want to get your husband to convert to Chapter 7 and add your name in it.

[justbroke]

You need to work with your husband's attorney. You may need to personally file for bankruptcy as well to deal with any deficiencies created. For example, if your husband surrenders the home in his Chapter 13, the lender could come after you and begin foreclosure as well (if you're not current and keep it that way). Also, if you do the deed-in-lieu or short sale, you expose yourself to deficiencies as well.

You need a winning strategy. As suggested by Flamingo, you should sit down with the attorney and figure out that best way to proceed.