Rent To Own

[mia111]

Hello all, this may or may not be a stupid question,but I see here that alot of people have sold their homes while in Chapter 13 to aviod forclousere and sheriff sale,but can you do a rent to own on your home in Chapter 13 to aviod foreclousre and sheriff sale also,to get someone in your home who can afford the mortgagae and buy it in the future.I ask this becuase we had a pay cut and strike and our behind and we would like to get someone in here fast who can afford the monthly payments before we go into forclousere.
thanks and sorry if this was a stupid question

[CATCHMEIFYOUCAN]

Mia

[B]Hello all, this may or may not be a stupid question,but I see here that alot of people have sold their homes while in Chapter 13 to aviod forclousere and sheriff sale,but can you do a rent to own on your home in Chapter 13 to aviod foreclousre and sheriff sale also,to get someone in your home who can afford the mortgagae and buy it in the future.I ask this becuase we had a pay cut IF YOU PAY HAS DECREASED DID YOU SEE IF YOU ARE ELIGIBLE FOR CH13 OR WOULD YOU RISK LOSING YOUR HOME ? and strike and our behind and we would like to get someone in here fast who can afford the monthly payments before we go into forclousere. I DONT SEE WHY YOU COULDN'T TRY AND GET SOMEONE TO RENT YOU HOME OR EVEN TRY TO RENT ONE OF THE ROOMS FOR AWHILE, BILLS GOT TO BE PAID YAHHH KNOW AND YOUR CERTAINLY DONT WANT TO SCREW UP MISSING ANY CH13 PAYMENTS, I DONT KNOW IF YOUR TRUSTEE EVENS NEEDS TO KNOW? HOPEFULLY OTHERS WITH MORE INSIGHT WILL CHIME IN HERE !

BEST WISHES, CMIYC

[lrprn]

can you do a rent to own on your home in Chapter 13 to aviod foreclousre and sheriff sale also,to get someone in your home who can afford the mortgagae and buy it in the future. I ask this becuase we had a pay cut and strike and our behind and we would like to get someone in here fast who can afford the monthly payments before we go into forclousere.
thanks and sorry if this was a stupid question

Not a stupid question at all, Mia. Since your Ch 13 trustee currently controls your financial assets, including the home, I'm guessing that you would have to get permission from your trustee to push this rental plan forward. Also could reducing or eliminating your mortgage payment tilt your income vs. expense figures on the Means Test not in your favor, increasing your disposable income significantly?

You need to run this rental plan by your lawyer before doing anything to see if it will fly and not accidentally do something that could hurt your case in some unexpected way.

With the kind of financial problems you are having, can your lawyer file an amended Ch 13 plan or can you convert to Ch 7? Please keep us posted on what you find out, ok?

[CATCHMEIFYOUCAN]

Ooops .. I meant if your pay decreased could you convert to CH 7 !

CMIYC

[spell]

I understand your perspective, but becoming a landlord only unnecessarily complicates your life.

If you have little to no equity in the house, consider converting to ch7 and surrender the house.
If you do have equity, just plain sell the house.

[mia111]

thanks all for your advice, we have decided to try renting/rent to own
we have nothing to loose trying( but the house) which may end up going into forclosere because if we don't find a renter we can't afford to stay here. Lawyer has done and will do nothing,we let him know our sitiuation,even asked about converting to 7,and it had been almost a month and no response.We want to convert to 7,but don't have the money to do so.
So if it doesn't rent we will have to face forclousere.thanks again

[wrinkleigh]

Mia ,

It sounds like you are on the brink of losing the home anyway. Even if you get a renter in there that does not pay on time or at all, you cant cover it and you will lose the house with no way out.

What about living in the house for another 2 months or so without paying the mortgage, By the time the mortgage lender starts the foreclosure, by not making mortgage payments, you will have saved enough to be able to pay to convert.

This way you could get out of the mortgage and by converting to a 7, you wont have to make those monthly 13 payments either.

This way, you could get a fresh start and be in control of your own finances again.

[jal1129]

Renting out your house when you have no money is a dangerous idea. We filed bk first time many years ago due to problems with rental property. If you get renters who don't pay on time you will be in trouble. Maybe you have good renters but then they loose a job, have an accident etc., can't pay and they want you to work with them on the rent and you have no room to budge. Plus the unexpected calls of the water heater going out, stove not working, broken window, septic backing up and you have to drop everything take off of work and go take care of the problem (and pay for it)! Or they call up and say the a/c isn't cold enough and want you to have someone come out to look at it today. Nothing but headaches and problems when you don't have any money or cc, believe me.

[Minnymouth]

Mia111,

Don't make your problems worse by trying to become a landlord also..... besides I don't believe the Trustee will let you sublet since you yourself cannot make the payments......

Your attorney should be discussing a new plan with your Trustee due to the change in your income..... kick him in the butt and get him going..... if he doesn't budge - call the Trustee........tell him the situation.

If you do not intend to live in the home - or no longer financially can - then it's time to quit paying on the mortgage (save your money for Chapter 7) and file Chapter 7 before foreclosure and sale..... You will probably have 3-4 months to save...

You did not state whether you had a lot of equity in the home or not???

If the future looks like you'll never be able to get straightened out then its time to let the home go and get out from under the financial strain of it.....

You probably filed a Chapter 13 to save your home..... now that's not needed unless you have a lot of extra income to pay your creditors...

Your attorney should be answering a lot of questions for you right now.........force him too.....

[mia111]

I understand all the renting worries,but with rent to own the renter is responsible for all the maintence etc, ( I have did rent to own myself before buying) and I was responsible for any repairs, lawncare,maintence etc. Also this house has new everything(windows,doors,carpet,roof,siding,plumbi ng,)etc.I just thought it would be worth a try to get a good rent to owner in here who would pay the rent and eventually buy it.If they stopped or couldn't pay rent then I would just have to let the house go into forclousure after that,which would happen anyway if I can't pay,but if they continued to pay rent and bought it,then the rent would not only get paid,and stop forclousure,but it would get sold in the future as well.
If I let the house go into forclosure,and file Chapter 7 , I will need to save to move first for the the first and last months rent and that will be hard to do both save for Chapter 7 and to move.