secured loans and home equity

[diegodog]

Hello all,

I have about 1 million in secured debt (with liens on my home) and have 40k of equity in my house.

My question is will I have to pay the the straight 40k over 5 years? My lawyer mentioned that they will take off a 6% sellers fee from the 40k making me only owe around 23k over teh 5 year period. Anyone ever hear of this?

Thanks,
Dog in PA

[rrockinggramma]

what the attorney is saying is that if the trustee were to sell your house to get that 40 K to pay off your creditors, you or the trustee would pay a broker to do that so hence, the seller fees, which would reduce the amount from 40 k to 25 k. So you would have to pay back 25 k cause that is all the trustee would get if he seized your home and sold it.

[diegodog]

what the attorney is saying is that if the trustee were to sell your house to get that 40 K to pay off your creditors, you or the trustee would pay a broker to do that so hence, the seller fees, which would reduce the amount from 40 k to 25 k. So you would have to pay back 25 k cause that is all the trustee would get if he seized your home and sold it.

Yup Thats what he said. Has anyone actually used this method?

[zeezee]

My attorney did a "liquidation analysis" on my home which came in appraised at wayyyy over what I thought it would. At any rate it left me with about $70k in equity but by the time my attorney did his thing, after the fees, etc. it came out to only $6k left over in equity (on a ch13). I was ecstatic! I thought I was going to end up having to pay at least the $70k I had in equity.