I'm about six months into a Ch 13. In a few months, all the kids will have finished school and be out on their own. Downsizing seems prudent. The 1st and 2nd mortgages total nearly $2000, and we could rent a very nice house for about half of that. We're self-employed and our financials have changed since I filed, so we plan to ask the trustee for a lower payment, as well.
I had a realtor friend come by last night who ran comps on the house. The mortgages total $163,000 (1st mortgage = $135k, 2nd mortgage = $28k). His best, reasonable estimate was that the house would sell at around $140,000.
If I understand it correctly, it IS possible to lien strip the 2nd mortgage while in a 13 - provided the sale and the strip are approved by the trustee, of course.
In a situation like this, are the commissions, closing costs, etc., considered reasonable and necessary, just as they would be in a non-BK sale? When I look at this from the 2nd mortgage company's perspective, as the trustee is supposed to do, it seems that the costs associated with selling the house are reducing the 2nd's share of the sale proceeds. Yet clearly selling the house is in my best interest, as the filer. I guess I'm seeking some insight as to the trustee's perspective here, and what the chances of his approval might be.
If approved, I'll be walking away with no sale proceeds, but with lower future housing payments.
Pre-BK options would be to voluntarily give the house back to the 1st mortgage holder, which would leave the 2nd mortgage with nothing (DIL?); and letting it go to foreclosure. Are these options while already in a 13? And what would the advantages be?
I had a realtor friend come by last night who ran comps on the house. The mortgages total $163,000 (1st mortgage = $135k, 2nd mortgage = $28k). His best, reasonable estimate was that the house would sell at around $140,000.
If I understand it correctly, it IS possible to lien strip the 2nd mortgage while in a 13 - provided the sale and the strip are approved by the trustee, of course.
In a situation like this, are the commissions, closing costs, etc., considered reasonable and necessary, just as they would be in a non-BK sale? When I look at this from the 2nd mortgage company's perspective, as the trustee is supposed to do, it seems that the costs associated with selling the house are reducing the 2nd's share of the sale proceeds. Yet clearly selling the house is in my best interest, as the filer. I guess I'm seeking some insight as to the trustee's perspective here, and what the chances of his approval might be.
If approved, I'll be walking away with no sale proceeds, but with lower future housing payments.
Pre-BK options would be to voluntarily give the house back to the 1st mortgage holder, which would leave the 2nd mortgage with nothing (DIL?); and letting it go to foreclosure. Are these options while already in a 13? And what would the advantages be?
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