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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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state of michigan. this is about my son and here is the info

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state of michigan. this is about my son and here is the info that i have. filled chapter 13 approx 5 years ago. his income was approx $75000. he kept his house and is current with his payments of $1100 a month, owes $ 140000 on a house worth approx $70000. he is current on his child support payments of $650.00 a month. he should be out of 13 but owes
approx $3000.00 that he does not have, and his lawyer has filed for a hard ship discharge. about 4 months his income dropped to $35000 and will be that way for the near future. he can no longer afford to stay in this house. since he is stll in 13, the house is not sellable what is the best way to un load this house?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

If the house was included in the Bankruptcy - which means he is no longer liable to the mortgage company - why does your son want to unload the house?

Customer: replied 6 years ago.
he can no longer afford the payments since his income dropped so much, jail time in michigan if you get behind in child support payments, and property values are still falling in this state. 10 to 20 years before there is any equity in it.
Expert:  cfortunato replied 6 years ago.

If he cannot afford to continue to pay the mortgage, he can just allow the mortgage company to foreclose on the house. Since the house was included in the Bankruptcy, and if he is able to get a hardship discharge (or convert the case to a Chapter 7 if he cannot get the hardship discharge), allowing the house to foreclose will have no negative impact on his credit score, and the mortgage company cannot get a deficiency judgment for the balance of the mortgage.

He can even continue to live in the home - even if he is no longer paying the mortgage - until the house finally sells at a foreclosure auction. (There are many who are still in their homes for years after not having paid the mortgage.)

 

I hope this has helped you. If not, please let me know.

Thank you!

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