boomerkae - yes there are very helpful people on this site - they helped me tremendously. I suspect someone will see your question and answer it today, be patient. Though I appear to be in a similar boat to yours, I want to keep my home, so at no time did I ever wonder or ask what would happen if I did not wish to keep the home. With the little knowledge I have I will not be able to provide you an answer. Perhaps the answer lies in selling the home for a short sale and then filing, that way when you eventually get discharged you will not have the debt you incur from the short sale. Once again, do not rely on anything I stated here, I’m just trying to start the process of answering your question. Two weeks ago when I registered and formed my question I found that once the first person replied other replies flooded in - Good Luck.
Additional Thoughts
What I do believe is you should not pay on your mortgage at this point even though you are filing Chapter 13. Also, it seems to me that there is no law stating you have to file Chapter 13 and keep your home. Chapter 13 is there for those who do not qualify for Chapter 7 because they make too much money (income is greater than the median). Once again, I’m sure someone will be along this lazy Sunday afternoon to provide you with a more thorough answer
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Filing Chapter 13 soon - and I dont' want my house....
My husband and I have been planning on filing ch 13; stopped paying credit cards months ago. We are current on the mortgage ($278K), approaching 2 months on the equity line ($109K), house is worth about $250 based on BPO. We were over median income so the ch7 was out; and we wanted originally to secure our home and lose the 2equity loan.
We currently have a filing date set for Dec 29.
But, for multiple reasons, including some repairs that are going to cost way more than we can afford, we don't want our house. Our credit is shot - so we know we won't be able to get a home loan. We are looking at moving in with my dad and paying a decent, but affordable rent; having my husband quit his job and take care of our two kids. when I worked up my income v expenses, we were -$400 (before leaving the house and taking the kids out of daycare).
So- my question (and I've reached out to my lawyer and am waiting for a reply)
How do we get rid of the house? Do we stop making the payments? Can it be included in the ch 13? Or, do we file first, then stop making the payments and let it foreclose? How does the foreclosure effect things?
I've been reading a lot - and will continue. A lot of folks seem really helpful around here so I'm hoping for some helpful answers!
Thanks!
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