Wishful thinking?
Newbie here. I apologize in advance if this is the incredibly naive scenario I expect it to be...
My husband and I filed Ch 7 in July and had our 341 in Sept. We stated that we plan to give up our house as we can no longer afford it (I was laid off) and Wells Fargo turned us down for a loan modification last spring after 10 months of "losing" our documents. We also have a second mortgage and between the two we are upsidedown on the house. We have already found a house to rent and will be moving in a few weeks.
Here's my fantasy scenario: let's say, hypothetically, that Wells doesn't actually foreclose (we are in arrears) and we can "ride through" after discharge. With the second discharged, could we then sell the house? We had originally planned to file 13 and keep the house, lien stripping the second, and had the house appraised at just under the amount of the first. However, we could quite realistically sell it for enough to cover the first mortgage (including the amount in arrears, closing costs, etc) and still make a little profit. Is this idea at all viable? What am I missing? Could the second make a claim to the profit after discharge?
My husband and I filed Ch 7 in July and had our 341 in Sept. We stated that we plan to give up our house as we can no longer afford it (I was laid off) and Wells Fargo turned us down for a loan modification last spring after 10 months of "losing" our documents. We also have a second mortgage and between the two we are upsidedown on the house. We have already found a house to rent and will be moving in a few weeks.
Here's my fantasy scenario: let's say, hypothetically, that Wells doesn't actually foreclose (we are in arrears) and we can "ride through" after discharge. With the second discharged, could we then sell the house? We had originally planned to file 13 and keep the house, lien stripping the second, and had the house appraised at just under the amount of the first. However, we could quite realistically sell it for enough to cover the first mortgage (including the amount in arrears, closing costs, etc) and still make a little profit. Is this idea at all viable? What am I missing? Could the second make a claim to the profit after discharge?
Comment