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Can I short sale my Mortgage if I am in a 5 yr payment plan for Chpt. 13??

Posted on: 28th Apr, 2010 04:17 am
I filed for Chapter 13 in July of 2008. I now have a payment plan that does not include my mo. mortgage payment, so I guess I surrended the house in the bankruptcy. The Bank (BAC) applied for a relief of automatic stay and it was granted. In October I asked the bank for a loan modification. Heard nothing until this month April 15, 2010, they suggested a short sale or a deed in lieu. I called my bankruptcy attorney who said I cound NOT do a short sale because of the Chptr. 13. My Broker/Realtor and the Bank (BAC) are insistent that I can move forward on a short sale. I normally would immediately defer to the attorney but during the process and now I have found him to be less than forthcoming with necessary information, so now I am a bit wary of him and I really do not have the finances to seek out another attorney. I am on disability. the bankruptcy was filed in Middlesex County, New Jersey 08846
Hi luc!

Welcome to forums!

If the mortgage lender had received a relief from the automatic stay, then it would mean that the mortgage and the property are not included in your bankruptcy filing. In that case, you would be able to short sale the property and get rid of it. However, you would be liable for the deficient balance resulting from the sale of the property.

Feel free to ask if you've further queries.

Sussane
Posted on: 28th Apr, 2010 11:19 pm
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