Can you give up your house during an active 13?

[gregorino]

Where's our moderator when we need one!

Thanks for all the replies and I agree...this board has been of great value in filing pro se.
I just received notice that the judge has granted my motion to pay motgage outside of plan! Whee!
So, now I need to strategize a little....What will happen if I withold paying the bank for a couple months AND my plan has yet to be confirmed? Would they bring a motion to move the mortgage back into the repayment plan? Would the Trustee move to dismiss? Would the judge rescind the order because I have failed to comply with the provision of remaining current? Should I keep current until after confirmation?

[filingin08]

lol, don't you know that all laws are enforced based on attorney interpretation?? It is their job to prove their way of interpretation. The bankruptcy code is the same yet it is interpreted how many different ways across different districts in the US.

Gawd yes! LOL! We had an adversary complaint filed on something our atty assured us we would be okay on. Guess the other atty thinks differently. We'll let the judge decide.

[filingin08]

Did you reaffirm your mortgage?? I think if you reaffirmed (which I don't know if attorneys are doing, ours never even asked us to) that you would have to dismiss and start over but if you didn't reaffirm, then you could. Maybe that's why the different answers??

We never signed any agreement with the mortgage co. I can't imagine the atty doing that on our behalf - they don't have our power of atty (that just made me laugh).

We would only walk away from the house if husband or I lost our job. We got a good deal when we first bought it and our suburb hasn't lost as much value as some, so we're about even. Of course, that's just on paper and in practice, we might be in the hole.

Sometimes I feel like I learn a lot more from this board than from our atty. She is fairly silent unless I ask a question. For her part, she's mostly quick to respond, but not always very thorough (we do a lot via email). This board has been a sanity saver.

[Tbornetun]

Is this a matter of law or district? Attorney intrepretation?

lol, don't you know that all laws are enforced based on attorney interpretation?? It is their job to prove their way of interpretation. The bankruptcy code is the same yet it is interpreted how many different ways across different districts in the US.

[becky20]

Our mortgage is outside our plan. Arrears are inside. Our atty told us we could NOT change our minds re the house in the middle of our BK13. We had to decide before filing to keep or not. If we changed our minds mid-way, we would have to dismiss and refile.

Did you reaffirm your mortgage?? I think if you reaffirmed (which I don't know if attorneys are doing, ours never even asked us to) that you would have to dismiss and start over but if you didn't reaffirm, then you could. Maybe that's why the different answers??

[filingin08]

Not meaning to hijack the thread.

I understand about the difference; however, it seems that given the same situation - mortgage paid outside, arrears inside - we have two separate answers from attys:

1) Yes, it can be done in the middle of a 13. No problems.

2) No, it cannot be done. Otherwise, dismiss and start over.

Is this a matter of law or district? Attorney intrepretation?

[becky20]

We are also in an active 13 and originally planned to keep the house but are now thinking we will let the bank foreclose as well. My atty said it would not be a problem.

[gregorino]

the difference is the question

Our mortgage is outside our plan. Arrears are inside. Our atty told us we could NOT change our minds re the house in the middle of our BK13. We had to decide before filing to keep or not. If we changed our minds mid-way, we would have to dismiss and refile.

It would not be possible to put the difference between what the bank has for a balance on the loan and what it's sold for in a foreclosure into the plan as this was not known at the time the plan was confirmed. Chloe says that their attorney said they could walk away and I think our friendly moderator concurred.
So, if the mortgage is approved to be paid outside the plan and then the house forecloses, how exactly, procedurally (pro se wants to know!) does this "difference" get discharged?

[filingin08]

I'm confused.

Our mortgage is outside our plan. Arrears are inside. Our atty told us we could NOT change our minds re the house in the middle of our BK13. We had to decide before filing to keep or not. If we changed our minds mid-way, we would have to dismiss and refile.

[gregorino]

Clarification Please

OK...Chloe said that the mortgage was outside the repayment plan. So, if the bank forecloses and is stuck with the "difference", how would that unsecured amount get into the plan so it could be discharged upon successful completion of the plan?
Would the plan be modified to accept this new unsecured creditor?

[brokeinfl]

Thanks! I'm guessing that is an appraised value. Maybe a good idea to know where you stand on this before filing, in case things go bad?

[HHM]

you probably can do a short sale on your house. If you are in bankruptcy they will probably let you do it because they know you cannot easily get a new loan.

Yeah, but why; there is no benefit to the seller of doing the short sale; and as for credit reporting a short sale and foreclosure are equally negative.

But let's not hijack this thread to discuss that, we have plenty of threads that discuss the pros and cons of a short sale (mostly cons because there is no pro side to teh story )

[njguy1972]

you probably can do a short sale on your house. If you are in bankruptcy they will probably let you do it because they know you cannot easily get a new loan.

[HHM]

Sorry for the newbie question, but paying the difference in what?

In today's real estate market, most houses have negative equity. Meaning that when a house goes to foreclosure, the bank does not receive anywhere near what is owed them. That "difference" is called a deficiency balance and becomes an unsecured debt to the borrower.

[brokeinfl]

Sorry for the newbie question, but paying the difference in what?