Stuck in a mortgage, paid but not discharged Chapter 13, do I still have options?

[jmh]

I'm in a tricky situation. The short version is that I must relocate within a year. I have equity in my home but can't afford the repairs needed to sell my home or get the credit needed to do the repairs and break even. I've paid off my Chapter 13 but am not at the discharge stage yet. Wondering if I can opt out of reaffirming my home or if there's a better plan.

I owe about $66k on my condo, and fixed up it would sell for $80k-$85k. It's a VA backed mortgage I've had for 11 years and even through Chapter 13 I've been on top of it. Requires repairs to the order of about $15,000 (I've confirmed this with several professionals in real estate and got estimates for the work from several places). I cut my expenses to the bone but it would probably be 2 years minimum before I could get a savings + a home improvement loan to get that kind of money in hand. It's frustrating as the equity is there to do the needed work but I can't get to it.

I've paid my 100% Chapter 13 plan in full but haven't done the final part yet. They still haven't disbursed the last payment to the creditors even.

Without going into it I will have to relocate out-of-state within a year, preferably by April or May at the latest, and it's not an option. And I don't have any rich relatives or people I could borrow the money from, nor assets.

I very much would like to get out from under this place the right way and not add any more damage to my credit or affect my ability to get future VA loans. It was suggested that I sell it as-is. However I can't, there are too many fixer-upper units in this development and they're not selling even at $60k, there are many foreclosures and it's getting worse. I can't take a $10,000 loss doing that. Either I need find a way to fix it up, or dump it, or something.

Does anyone have any suggestions? Something I'm not considering? Again I'd like to sell it properly but I'll do what I have to do if it comes to it.

[forgotten]

Contact your attorney right away. You may still be able to modify your plan to surrender the home. I am not sure this late in the game but you need to find out quicky.

[newbie2]

I absolutely agree with forgotten (above). The key here is getting on the phone with your attorney today. In a Chapter 13 a house surrender is quite different..the deficiency balance is treated as unsecured debt, and therefore they should receive part of the "pie" so to speak along with other unsecured creditors. Since you want to surrender at the end of your plan, they didn't have a chance to be given a part of the distributions. I don't know how that will work but you really need to talk to your attorney today.

[justbroke]

Yes, certainly speak with your attorney. This could be an interesting situation since you would need to discharge any deficiency created by surrendering. This would require you to file a Motion to Modify Confirmed Plan and have it approved. Next, the lender would probably complain by filing a complaint to determine dischargeability of the deficiency created by the late surrender. These are things your attorney can look at and figure out the best course of action.

I haven't read any Chapter 13 cases where property was surrendered so close to the end of the plan.

[jmh]

The attorney's on tap for Tuesday already, just wondering if anyone had any experience with anything like that.

[newbie2]

The attorney's on tap for Tuesday already, just wondering if anyone had any experience with anything like that.

You would be the first that I've read about here. Please stick around and let us know how it works out. What you have to say could be beneficial to many people. Hope you can do it!