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In an active 13, going to now walk, and wanting to buy a condo cash...

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    #1

    In an active 13, going to now walk, and wanting to buy a condo cash...

    First, sorry if this was covered in another thread.

    Currently, I am in a chapter 13 for over a year. All is good with the 13, current, but I now want to walk from the home because the home is just too under and interest adjusts in a few years...

    So, after the home goes into foreclosure and I get kicked out (my guess is that I have a good year to 2 before this happens, as I am current with my mortgage right now, but I am going to stop paying in a few months)...

    what are my options if I want to buy a condo cash? or even if I want to put down 20 percent? Is the trustee going to likely throw a hissy fit, wondering where I got the money? Is the better play to just wait for a discharge and then move forward? Haven't discussed this with my attorney because I am still upset at her for not putting me in a 7 when I qualifed! Either way, I just wanted to see if anyone has been in a simliar situation.

    Thanks!
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    #2
    I'm not a 13 GURU, but I believe that when you quit paying the condo, your Trustee will motion you for dismissal. AND to buy another for cash? I would be very careful my friend as if you have that kind of money, the Trustee better know of it or F R A U D. Not pretty. 'Hub
    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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      #3
      Well, the money is in my 401k (I would take a loan out), so its not fraud, but I hear ya.

      The play is prob. to just rent until I get a discharge and then move forward.

      Thanks for the feedback!

      Comment

        #4
        Originally posted by AngelinaCatHub View Post
        I'm not a 13 GURU, but I believe that when you quit paying the condo, your Trustee will motion you for dismissal. AND to buy another for cash? I would be very careful my friend as if you have that kind of money, the Trustee better know of it or F R A U D. Not pretty. 'Hub
        Trustee is not going to motion for dismissal of the Chapter 13, as my attorney has told me I can walk at anytime during the chapter 13. The lender will file for permission to foreclose, and that is about it.

        Comment

          #5
          Originally posted by AngelinaCatHub View Post
          I'm not a 13 GURU, but I believe that when you quit paying the condo, your Trustee will motion you for dismissal. AND to buy another for cash? I would be very careful my friend as if you have that kind of money, the Trustee better know of it or F R A U D. Not pretty. 'Hub
          Hub, I respect your posts, but you seem confused in your post, throwing out fraud and stuff you don't understand. At least you admit you are not a 13 guru.

          Anyway, there are legal ways to get things done. You seem to not consider options that may be available. And spout off nonsense.

          Sorry for the rant, but your post is upsetting because I am grinding out this 13 and have made close to 2 years of payments and was looking from some thoughts, not some elementary nonsense.

          later.

          Comment

            #6
            Originally posted by espo1357 View Post
            Trustee is not going to motion for dismissal of the Chapter 13, as my attorney has told me I can walk at anytime during the chapter 13. The lender will file for permission to foreclose, and that is about it.
            My concern would be this: Once your trustee sees the lender filing for relief of stay in order to either get paid or foreclose, the trustee is going to ask "Where is the mortgage money going that was budgeted?" Has your lawyer discussed with you what the trustees do in your district?

            Paying cash (taking exempt money and turning it in to non-exempt funds) would be very unwise during your plan.
            Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
            I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

            Comment

              #7
              Originally posted by newbie2 View Post
              My concern would be this: Once your trustee sees the lender filing for relief of stay in order to either get paid or foreclose, the trustee is going to ask "Where is the mortgage money going that was budgeted?" Has your lawyer discussed with you what the trustees do in your district?

              Paying cash (taking exempt money and turning it in to non-exempt funds) would be very unwise during your plan.
              Thanks for the feedback.

              I guess nobody has been through this?

              Well, my thinking is that if that was the case, where they want to know where the money went...well, that is when I just let my 13 get dismissd, and then just hit them with a chapter 7 later, by taking a lower paying job down the line.

              I just want to explore options.

              HUB, sorry if I was rude, but F R A U D, is that necessary?

              Comment

                #8
                Espo, people don't normally just walk away from their house while in a 13 without notifying their attorney and their trustee. There are procedures for doing it, and most people follow those procedures so they don't have the stress of waiting for the other shoe to drop. There may be a few people here who have done it, but I haven't seen it yet on this forum.
                Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
                I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

                Comment

                  #9
                  Originally posted by espo1357 View Post
                  Hub, I respect your posts, but you seem confused in your post, throwing out fraud and stuff you don't understand. At least you admit you are not a 13 guru.

                  Anyway, there are legal ways to get things done. You seem to not consider options that may be available. And spout off nonsense.

                  Sorry for the rant, but your post is upsetting because I am grinding out this 13 and have made close to 2 years of payments and was looking from some thoughts, not some elementary nonsense.

                  later.
                  Yes you are right. I upset a newbie on another thread. I guess I am just a bit too fast on my responses tonight and have jumped the gun on diplomacy. It was a particularly frustrating day for me (yesterday).

                  About pulling from the 401K for a condo though, as you already know, the consensus on that has always been a bad idea due to the fact that you will never make back all the interest lost as well as penalties, and taxes. 'Hub
                  If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

                  Comment

                    #10
                    Originally posted by newbie2 View Post
                    Espo, people don't normally just walk away from their house while in a 13 without notifying their attorney and their trustee. There are procedures for doing it, and most people follow those procedures so they don't have the stress of waiting for the other shoe to drop. There may be a few people here who have done it, but I haven't seen it yet on this forum.
                    Yup. I called the BK attorney and they are so passive about it all. They indicated that if the new and improved modification doesn't go through (I did qualify for a loan modification last year, but the interest rate goes up and the home is still about 40% underwater, so my goal is to get a new modification that will make long term financial sense), to just contact them.

                    I guess I am still unsure if I want the home or not. Once I give them the indication that I am definitey not interested in the home, then I will be good. I guess if I am no longer paying, then that time has come.

                    Also, I want to apologize to you and Hub if I was rude. I am really upset at my attorney for not suggesting a 7 to me, when I had the chance. After my loan modification, I no longer qualifed for the 7, and now I feel so stuck in this 13.

                    My opinion of attorneys is not good after that debacle he pulled, because he is getting 4-5X more money for putting me in a 13 over a 7. But, he should have had the professional integrity to get me in a 7, as he has tons of experience and has seen cases like mine, where to obvious "play" is to file a 7.

                    Its my fault too because at the time I didn't have the best information about my options and I was naive, as well as stressed out over all that was going on in my life at the time. Live and learn is a part of life.

                    Seems like the last 10 years of my life has been burn after burn, from real estate agents to brokers to bankers to employers to girlfriends. LOL, it never ends. Its so dam hard to trust anyone or take anyone seriously after this BS. Oh well, we move on!
                    Last edited by espo1357; 03-23-2011, 04:42 AM.

                    Comment

                      #11
                      No need to apologize on my behalf. I did unjustly jump on you without enough info. As I said, I have been under some of my own stress and a bit short of late. I feel badly that I insulted a newbie on his first post last night. Sometimes it's best to say nothing when not up to the spirit of the situation. I hope I did not drive the new guy away.

                      Please rethink long and hard about any loan of 401K funds. Remember, I speak (mostly) from my own mistakes and did that dirty deed. Now I sure could have used my money as we are on only a little pension and SS. We were worth in land and assets more than 10 mil in 2000. It is a life style change for sure, so I understand your frustration too. 'Hub
                      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

                      Comment

                        #12
                        Attorney said I could walk and the payment will not change! Looks like I will have some free rent coming up.

                        Didn't bother to ask about buying a condo, but it seems obvious to just wait for a discharge before moving forward.

                        Comment

                          #13
                          Originally posted by espo1357 View Post
                          Attorney said I could walk and the payment will not change! Looks like I will have some free rent coming up.
                          Unless you were in a 100% payment plan to begin with, I don't believe that this scenario is possible - unless your mortgage payment was the "allowed" rent amount for the county you reside in...

                          I'd verify that fact before doing anything...

                          My $0.02 only...

                          Good luck.
                          No person in their right mind files a Ch. 13 with lien strip pro se. I have.Therefore, please consider me insane and clinically certifiable when reading my posts, and DO NOT take them as legal advice of any kind.Thank you.

                          Comment

                            #14
                            good luck and tread lightly
                            Ch 7 filed 8/15/11 341 9/22/11 Discharge 11/28/11
                            The rebuilding begins

                            Comment

                              #15
                              Yes, that 401k money is protected from creditors, without a discharge, anything you do with it potentially exposes it to creditors.
                              If you end up back in another chapter 13 later, you don't want to have equity exposed to creditors, puts a big minimum under your plan base.
                              Better to just rent until you get the discharge. Home prices aren't going up anytime soon, the only trick is protecting your 401k from inflation.
                              P.S. agree with what shark said
                              filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

                              Comment

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