What happens to my current house(and plan payment) if I surrender?

[comandercody]

We are 24 months into a 60 month 13. Mortgage payments, as well as car(s) and a small % of unsecured debt payments go to the trustee. Nothing is paid to creditors outside the plan. Things are tight. We have not missed a plan payment. Have a possible job opportunity in another state(should be an increase in income, but not much. If we "surrender" the house, do plan payments stay the same? Do I have to wait for the bank to foreclose before the payment changes? How long can that take? How will I be able to pay rent in new state?

Calls to my lawyer take a while to be returned. Thanks for any help, this is a great forum.

[despritfreya]

If you modify the Plan to surrender the home your Plan payment will be based upon your new income less your new expenses. However, your Plan payment must still be sufficient to provide payment of what needs to be paid, excluding the surrendered home, and your budget must show that you can afford that payment.

You do not have to wait for the foreclosure. You are free to move to the new location and find suitable housing (rental). In conjunction with the modified Plan you will simply stop tendering the mortgage payment. The lender will seek to have the Stay lifted and then will proceed in due course to foreclose under North Carolina law.

Des.

[cmccarrick]

If you modify the Plan to surrender the home your Plan payment will be based upon your new income less your new expenses. However, your Plan payment must still be sufficient to provide payment of what needs to be paid, excluding the surrendered home, and your budget must show that you can afford that payment.

You do not have to wait for the foreclosure. You are free to move to the new location and find suitable housing (rental). In conjunction with the modified Plan you will simply stop tendering the mortgage payment. The lender will seek to have the Stay lifted and then will proceed in due course to foreclose under North Carolina law.

Des.

The first and second mortgage, plus the arrears was the lionshare of the plan payment. There is some credit card debt, and the two cars. This new move could happen quick(if things work out), how long will i have to keep up the original plan payment, how long does a modification take? Do I have to provide what the new rent will be, or can it be ballparked?

Thanks again.

[despritfreya]

The first and second mortgage, plus the arrears was the lionshare of the plan payment. There is some credit card debt, and the two cars. This new move could happen quick(if things work out), how long will i have to keep up the original plan payment, how long does a modification take? Do I have to provide what the new rent will be, or can it be ballparked?

These are all questions for your attny as each jurisdiction has its own local procedures but, in general, your Plan payment would change with the payment that falls due after the modified Plan is filed and yes, you can estimate the rental amount.

I believe the bigger question is whether or not you will still need the 13 or could convert to a 7. Coverting to a 7 will depend upon how you handle the vehicles, if you have non exempt assets, and whether or not you "qualify" for the 7. Again, these are issues you need to discuss with your attny who is familiar with your case.

Des.

[comandercody]

Thank you very much.