Posted on: 21st Aug, 2009 12:35 pm
my wife & I are separating & I cannot afford the mortgage on my own & we both want to walk away from the house. We do not want to keep it.
We have 2 mortgages, an 80% 1st & 10% 2nd. We have approx $55k in unsecured cc debt. We'd like to go chapter 13 & JUST GET RID OF THE HOUSE. We could then afford to pay off the cc debt without having that in the bankruptcy.
Can we do this?
Will the court ok this?
Can the mortgage company come after us for the $$ ... the house is approx 25% underwater. We paid $358 & have it on the market @ $295 short sale with ZERO takers. I think it could go for $275k, maybe less.
We have 2 mortgages, an 80% 1st & 10% 2nd. We have approx $55k in unsecured cc debt. We'd like to go chapter 13 & JUST GET RID OF THE HOUSE. We could then afford to pay off the cc debt without having that in the bankruptcy.
Can we do this?
Will the court ok this?
Can the mortgage company come after us for the $$ ... the house is approx 25% underwater. We paid $358 & have it on the market @ $295 short sale with ZERO takers. I think it could go for $275k, maybe less.
hi steveski,
if you file chapter 13 bankruptcy, you won't be able to get rid of the property. the lender would give you a repayment plan and you'll have to clear off the mortgage dues. as far as the unsecured debts are concerned, they will get discharged.
in my opinion, it will be better if you could apply for a deed in lieu of foreclosure. this will help you in surrendering the property to the lender and you won't be responsible for the balance amount. you can then pay off the unsecured debts.
thanks
if you file chapter 13 bankruptcy, you won't be able to get rid of the property. the lender would give you a repayment plan and you'll have to clear off the mortgage dues. as far as the unsecured debts are concerned, they will get discharged.
in my opinion, it will be better if you could apply for a deed in lieu of foreclosure. this will help you in surrendering the property to the lender and you won't be responsible for the balance amount. you can then pay off the unsecured debts.
thanks