Hi All,
We are considering amending our Chapter 13 plan to surrender our second home, which is located in Nevada. It is severely under water, and requiring repairs that we cannot afford.
From what I understand, Nevada state foreclosure laws makes it possible that we could be liable for the deficiency, since it is not our primary residence and it has been refinanced (we have only the 1st mortgage, no 2nd). If the lender decides to come after us for the deficiency, how would that play out in our bankruptcy? If the deficiency balance were to be added to our plan as unsecured debt, it would have a huge impact because we are paying back 100% of our unsecured claims. Could more unsecured debt even be added to our plan, now that we're over two years into it (way past the Claims Bar Date)?
Also, in case it makes a difference, we are paying this mortgage outside of our plan.
I would really appreciate any advice or insight!! Thanks!
We are considering amending our Chapter 13 plan to surrender our second home, which is located in Nevada. It is severely under water, and requiring repairs that we cannot afford.
From what I understand, Nevada state foreclosure laws makes it possible that we could be liable for the deficiency, since it is not our primary residence and it has been refinanced (we have only the 1st mortgage, no 2nd). If the lender decides to come after us for the deficiency, how would that play out in our bankruptcy? If the deficiency balance were to be added to our plan as unsecured debt, it would have a huge impact because we are paying back 100% of our unsecured claims. Could more unsecured debt even be added to our plan, now that we're over two years into it (way past the Claims Bar Date)?
Also, in case it makes a difference, we are paying this mortgage outside of our plan.
I would really appreciate any advice or insight!! Thanks!
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