Legal Question in Real Estate Law in New Jersey

Re: What happens if I am in a chapter 13 and the government wants my house by em

I concur with the other authors, that condemnation, Chapter 13 and your locating another house are all mutually exclusive, and that the government does not have to supply you with a new mortgage. Several cautions, besides those mentioned by Kevin (as to verification that you receive full value for the house and relocation expenses). You might want to spend some funds to get an independent appraisal to verify full value, but at least check comparables with several local brokers. Also, once you are paid, the funds received may impact on your bankruptcy matter, and could be used to meet your debt obligations. I believe the pending condemnation must be disclosed as part of the bankruptcy, so be cautious. If you have not already done so, you may want to retain a bankruptcy specialist to assist you in the matter, or at least guide you. Since a bankruptcy affects your credit rating, be aware that any new mortgage will probably be at a higher cost than normal.

Re: What happens if I am in a chapter 13 and the government wants my house by em

My understanding of eminent domain is that the government must pay you fair market value for your home. They do not have to assist you with a mortgage.

It will be difficult for you to obtain a mortgage while in chapter 13. Can you take the proceeds received and buy a new home?

Re: What happens if I am in a chapter 13 and the government wants my house by em

Although there are mortgage companies that will not deal with somebody in a 13, there are many that do nothing but. I am affiliated with lenders who help people in bankruptcy. Paul Gehweiler at American Home Mortgage for one. You could call him at 800-624-6752. Tell him Steve Rothberg told you to give him a call. He might be able to help you. As to the government helping you, they will pay you fair market value, but they are not required to lend you funds for a replacement property.

Re: What happens if I am in a chapter 13 and the government wants my house by em

I can not respond to the mortgage question, but who is taking your property, DOT, the School Const. Corp (SCC), or your county/town? Not only do they need to pay the reasonable market value for your home, but they must also pay your relocation costs.

Becareful to be sure you get fair market value for your home. NJ-DOT is genarally quite good about taking homes, but the SCC or the county, WILL try to short change you 90% of the time. For the cost of an atty, I'd have any offer reviewed. It could save you thousands!

Good luck!