Selling Rental properties in Chapter 13

[LeftRight]

I have 2 rental properties that I will try to sell or refi in my chapter 13. If I get a decent offer of less than 30k of market value, will the trustee ok my selling the property?

[Pandora]

In a Ch. 13, you need to get the trustee's permission PRIOR to sell anything - make sure you ask before you jump the gun and list something for sale, else you could face your 13 being dismissed. Also note that anything you make from sales, in most instances, the trustee will take. If you're not in a 100% payback to all creditors, that money will be turned over to them.

[despritfreya]

To sell non-exempt real property of the Estate prior to Plan Confirmation or, if the Order Confirming does not "vest" the property back in the debtor:

1. You must find a real estate agent and then file a Motion to Appoint him/her for the purpose of marketing and selling the property.

2. Once you have a contract and an open escrow you must file a Motion to Sell Non-exempt Property Free and Clear of Liens with Liens to Attach to the Proceeds. Set your closing out about 30 to 45 days to allow time for a Hearing or "negative notice", which ever your jurisdiction uses.

3. Once the sale closes and all liens and closing costs are paid, any remaining funds are given to the Trustee for the benefit of the unsecured creditors. If you are not already a 100% Plan, the dividend to the unsecured creditors will increase.

If you are attempting a short sale, such is really not in your best interest. Just surrender the property as there is no benefit to you.

If there is equity in the property then selling would be a good idea but you must understand that you will not "profit" from the sale unless there is money left over after paying all allowed claims in full.

If your Plan is already Confirmed and the Order Confirming has "vesting" language, contact the Trustee to find out what his/her procedure is.

Des.

[justbroke]

Very nice Des.