Buying a house 40 months into BK

[patieboy38]

I can't seem to find any specific details on the web - wondering if the trustee will allow a sale of my existing home and the purchase of a new home while I am still in the 13. I did a lien strip and have approx. $175 in Equity now (the first 36 months of the plan went to first mortgage's arrearages)
Will the trustee allow me to roll all of it into a new home? The new mortgage payment will almost double - not sure if that's a factor
Thanks!

[despritfreya]

While you can sell your home, if you sell it before you obtain a discharge you will have to deal with your 2nd. Pull the lien strip order. I have no doubt it requires a Chapter 13 discharge before it is effective.

As to buying, you will need at least your Trustee’s approval which typically is not a problem so long as you can produce a budget that shows you can still afford the Plan payment. If you do not have an attny call the Trustee’s office to see what his/her procedure is. Further, since you may not be able to sell the home you currently have you will need to modify your Plan to surrender it.

Des.

[dmc-2008]

Won't this open a can of worms and allow the trustee to ask how you can now afford twice the payment? If you have that dmi, i would sock it away for emergencies and just ride it out! You git a lien strip and that is worth lots! I just got mine too and feel like it is $ in the bank if iI discharge successfully and I dont want to mess with that! I dont know much but me thinks stay put and dont rock the boat, but again I am kind of a chicken! Good luck!

[patieboy38]

good points guys - thanks