Any Ideas?

[jmonez]

I am just wondering if anyone knows what would happen if I was late or even foreclosed on my home with my 1st mortgage, my second is being lien striped through my chap 13. My 1st is being payed outside the plan and was never included in the plan. I am just thinking this may be a good decision at this time since my home value has dropped so much and I am aprox $150k negative. any advice would be great.
Thanks

[lrprn]

I am just wondering if anyone knows what would happen if I was late or even foreclosed on my home with my 1st mortgage, my second is being lien striped through my chap 13. My 1st is being payed outside the plan and was never included in the plan. I am just thinking this may be a good decision at this time since my home value has dropped so much and I am aprox $150k negative. any advice would be great.
Thanks

First, understand if you voluntarily dismiss your Ch 13 before discharge, your second mortgage won't be stripped any longer. You need to stay in your 13 and successfully complete it - otherwise if you dismiss it, it's like you never filed and your second mortgage activates again.

Now if you want to change your mind and surrender the house back to the lenders during your Ch 13, that's a whole different story. Be sure to discuss the consequences of doing this with your lawyer. Depending on your bk court district, surrendering your home *might* impact your 13 payments in ways you don't anticipate.