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Sell existing home and buy new during ch13?

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  • Sell existing home and buy new during ch13?

    Here's my situation (live in Chandler Arizona):

    I am going on my 3rd year of chapter 13 and have never missed or been late on a payment.

    I still own my house which I bought with my previous wife. We both went chapter 13 and make the payment. She no longer lives in the house. I've been making the house payments for the last three years on my own. She still own 50% of the house even though she does not live at the residents. Yes, she got the better end of the deal! We are both remarried since.

    Ok, here's what's up. She recently told me she wants to sell the house and go for the early payout for the chapter 13. We have more than enough equity. At first I freaked, but after more thought, I decided it would be nice to get this off of my back.

    First of all I have a decent job (and decent pay) and have worked for them for 10 years.

    The way I see it, I have three choices:

    1. Don't move until the 13 is up in 1.5 yrs. I'm not sure what legal ground I have here, but I imagine she might legally fight it.

    2. Refinance the house, pay off the 13 and give the 50% I make after all said and done to the X wife. I'm not thrilled to refinance this home since the price has gone up 125K !

    3. Sell the house and pay off the 13 and give the 50% I make after all said and done to the X wife. Now, turn around and buy another house. I should have around 10-15% down payment.
    I really want to do this option, but I don't want to find out I have to wait and not have a new house. Do you think a lender will go for this? I've never had a problem paying my mortgage.

    Please help me out. I'm nervous as all heck here!

  • #2
    Speak with an atty. You might be entitled to 1/2 of the monies you paid up till now unless it was stipulated in the divorce decree that it was all on you.

    Why should she get a free ride/lump sum when you been paying on it for the last 3 years?
    This will pass. Life's got bigger disapointments waiting for you.


    • #3
      Well, unfortunately, that's how the decree reads.


      • #4
        Well option 3 sounds reasonable and there are many lenders who will do a ch 13 buyout. I think you need to consult your divorce decree and proeprty settlement sections but since you are both in the chapter 13 together and the home is still half owned by her that you would have a hard time excluding her from gain on the sale, but you may be able to say that she can only be entitled to gain up to when you remarried since I am assuming your wife lives there with you and since remarrying your wife who is there is entitled to the increase in value since then. Consult an attorney.