Legal Question in Bankruptcy in New Jersey

Re: Should I or Shouldnt I?

It is not likely that your lender will permit you to sell the property without paying off the loan or having a credit-worthy buyer assume your mortgage. After all, the lender is a secured creditor and that is what permits them to charge a lower interest rate than unsecured creditors such as credit card companies. If the lender were to release its security interest prior to full payment and the deal went bad, somebody's head would roll. Despite how well you may have repaired your credit, there are few loan officers who would take that chance with their careers no matter how much they may like you.

That said, if there is good reason for your not wanting to pay off the loan and if you can offer other equivalent security to the lender, you might be able to work a deal.

There is always a shot at negotiation. One thing that many Americans don't appreciate is that everything is negotiable. If you want to make an adjustment to your mortgage contract, you have to be prepared to show the lender why that is a good deal for them also. You should also be prepared to pay the costs of any changes. The lender is in a preferred position as a secured creditor and their Lending Committee will see no good reason to change anything unless it results in a net benefit to them.

Selling house to payoff Chapter 13

A careful analysis needs to be made before you make this decision. If the house went up in value, you may be required to pay more than what was contemplated pursuant to the Chapter 13 Plan. The best thing to do would be to schedule an appointment with your Bankruptcy Lawyer to discuss the matter in detail. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There certainly may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you already have a bankruptcy attorney, you should call him/her to discuss your matter in more detail. Only then will you be able to rely on the advice. Good luck! Rob Gleaner