Plan Confirmed - Can We Modify and Surrender House?

[charmd]

Our plan was confirmed October 2010 and we are now thinking of surrendering our home- can we modify our plan to do this? I don't want to have our BK dismissed due to not being able to keep up with the house payments.

We were trying for a loan modification but no luck so far.

[despritfreya]

Yes you can modify the Plan to surrender the home. If the current Plan provides funding to cure pre petition arrears, the $$ that has not already been paid to the lender can be removed. You should be able to adjust your Plan payment accordingly but based upon an updated Schedule I and J.

Des.

[charmd]

Thanks that is a relief! We also have back property tax and our 2nd arrears in the plan- would those be adjusted out as well? I am sure it would just be put to the unsecured creditors but I want to make sure the 2nd mortgagee can't come after me for any amount not recovered in the house sale.

We are ok with the first, but the second is underwater by about $60,000. Not enough to strip unfortunately.

[despritfreya]

Any amounts associated with the property that have not already been paid can be removed when surrendering property. The only questions are: 1) What is left to pay in the Plan and 2) What can you afford to pay?

Des.