2nd Mortgage lien strip and moving

[hdhs]

So, I live in Indiana and we have 22 months left on our chapter 13 plan. We have a first mortgage on our home and we had a second mortgage that was stripped when we filed the chapter 13. I have recently been presented with possibly a fantastic job opportunity, however it is out of state. If I were to get permission to sell my house and move, what happens to that second mortgage?

Thanks

[justbroke]

First, you'd need permission to sell your home. You would also need to pay the second lienholder since the lien strip is not effectual until discharge. In other words, selling would be just as if you weren't in bankruptcy and held two mortgages; both mortgages would need to be satisfied upon sale (transfer of title).

[hdhs]

So, knowing that I will not get enough from the sale to cover both mortgages, I would owe the difference? I'm guessing that I will fall short about $40k of the two mortgages combined. Guess I may be better off just staying put for 2 more years.

[justbroke]

So, knowing that I will not get enough from the sale to cover both mortgages, I would owe the difference? I'm guessing that I will fall short about $40k of the two mortgages combined. Guess I may be better off just staying put for 2 more years.

Unless you could get the court to allow you to sell for less (Sell Free and Clear), then you would need to have that money at closing.