Selling Condo after 13

[spearmint]

Since I have lost all my equity in my home (upside down now) because of the fall in the real estate market and since I will have to take advantage of what the BK13 laws will offer me to keep my home (loan mod), I wonder what happens to any future equity that may materialize. Will the government get a portion?

What I am trying to get at is I would like to move from here at some point and have a downpayment on another place but would need some equity in this one to use for a downpayment - OR will I be stuck here for life?

[lrprn]

What I am trying to get at is I would like to move from here at some point and have a downpayment on another place but would need some equity in this one to use for a downpayment - OR will I be stuck here for life?

During your Ch 13, your home's value is considered to be what it was the day you filed. Even if the home significantly increases in value during your 13 (very doubtful now given the recent real estate market crash), it's my understanding that you get to keep any equity increases after your 13 is over and can turn them over into a new home once your credit improves enough to qualify for a real estate loan again.

[Flamingo]

Example for you - us....we had a good bit of equity in our house when we filed; however, due to a job loss, we could not refinance and use that equity to prevent us from filing. We filed Chapter 13; during our Plan years, our equity skyrocketed as we also paid down our first and second mortgage outside the plan (we had a 15 year first mortgage when we went into our 13 with several years already paid into it). We bought out early due to major repairs that had to be done and we had so much equity but we only took out enough to replace the roof and other house repairs and pay off the balance of our Chapter 13 due at that time. We refinanced for less than 1/2 of what the house was worth, all equity being ours. Due to not going crazy in taking out more money at refinancing, we are sitting fine today as to the mortgage crisis as we owe way less than what our house is now worth even with the decline.

The equity you accumulate during your Chapter 13 is yours unless you do a modifiation which puts a lien on that equity when/if you eventually sell your house.