3-yr Arm Loan / Chapter 13

[erinb1975]

If they sell the house for less than owed, that will be added in the bk, right? What if it is a large amount?

From what I understand, if the house sells for less than what you owe, that can become what is called a deficiency judgement, meaning you are responsible for that portion. If they file a claim on that amount, it would be added to your unsecured debt, and receive whatever percentage is allotted in your plan, I believe, someone correct me if I'm wrong. What I have heard on here, and per my lawyer, is that alot of times by the time that they get around to filing a claim on that portion, the date to file claims has passed, and they end up getting nothing.

Worst case scenario, they get lumped in with your unsecureds. If it is a large amount, then that means the other unsecureds will get close to squat. Not sure how that all works out.

[Faithfullymovin]

Erinb1975- I could not have said it better myself..We are also surrendering our home. I just moved to a rental this weekend and I am free as a bird!!!

I am curious about Chapter 13 and surrendering your home. Can you surrender your home and not be liable for the deficiency when the mortgage company sells your home if it has been surrendered?

I am walking away this month and will talk to a BK attorney shortly after walking away.

Thanks,

[rrockinggramma]

they would have to file an amended claim. To mark, have you checked into FHA secure program? Sounds like you might make that happen before filing. And a 590 score is ok for FHA

[CH33 Paralegal]

you can file with an arm, but that arm can adjust all day long and there's nothing your attorneys can do for you to fix it. you owe the trustee what you owe and if your budget goes up $300 extra on your J because of your arm, that won't change your trustee payment. you're going to have to find $300 extra a month to pay for that arm.

[Faithfullymovin]

Another questions. If you file Chapter 13 and do not want to keep your home, then are you still responsible for the deficiency (the difference from what you owe and what the bank sold it for)?

Thanks,

[erinb1975]

Another questions. If you file Chapter 13 and do not want to keep your home, then are you still responsible for the deficiency (the difference from what you owe and what the bank sold it for)?

Thanks,

To my understanding, if they file an amended claim, then the deficiency balance gets treated like unsecured credit, and they get whatever percentage the rest of your other unsecureds get. Alot of times though they won't even bother filing an amended claim. Worst case scenario, it gets lumped in with your unsecureds.

[rrockinggramma]

it would be discharged at the end of your plan.

[dogman716]

Talk to the mortgage company first .With the new bills being passed they are more a little more willing to help you out.My mortgage company just extended my fixed rate for another 5 years.Really saved my butt.I knew once the Arm kicked in i was done.

[chloe0724]

I am trying to work with my lender that holds my second, but they told me that they are unable to speak with me because I am in an active 13. I am hoping that by 10/01/08 when the new law goes into effect, that they may be more willing to talk.