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  • Saving our house

    Greetings -

    My wife and I are trying to replace business we lost when a large
    client of ours went belly up, but it appears a bankruptcy filing is in
    our future. We've been in our house 20 years, but don't have much
    equity in it, since we borrowed against it to fund the business. We've
    fallen behind in our mortgage payments, car payments, CC payments . .
    ..

    I can't make a Chapter 13 filing work, as our monthly income is all
    over the map, and a Chapter 7 filing will only delay foreclosure. I
    have located an investor who will buy our house and sell it back to us
    on a land contract. We live in Michigan, which has relatively strong
    law regarding land contracts.

    Is there anything illegal, immoral, or fattening with filing Chapter
    7, then having the investor buy the house after the discharge and sell
    it back to us? We need time to rebuild the business and would only
    follow through with the sale-buy/back if the bank holding our existing
    mortgage moves to lift the automatic stay quickly.

    Conversely, can the sale-buy/back occur before filing C7 with a
    re-affirmation afterwards?

    It's a weird question, but its the only solution I've been able to
    come up with after wracking my brains to come up with a way to save
    our house.

    TIA for your thoughts.

  • #2
    Saving our house

    On the home, what is the appraised value, what is owed?


    --
    Michael Papp
    Neustar Financial
    iNet Lending Group
    www.iNet-Lender.com
    MSN Messenger ID - iNet-Lending


    "Your mileage may vary" <[email protected]> wrote in message
    news:[email protected] om...
    Greetings - My wife and I are trying to replace business we lost when a large client of ours went belly up, but it appears a bankruptcy filing is in our future. We've been in our house 20 years, but don't have much equity in it, since we borrowed against it to fund the business. We've fallen behind in our mortgage payments, car payments, CC payments . . . I can't make a Chapter 13 filing work, as our monthly income is all over the map, and a Chapter 7 filing will only delay foreclosure. I have located an investor who will buy our house and sell it back to us on a land contract. We live in Michigan, which has relatively strong law regarding land contracts. Is there anything illegal, immoral, or fattening with filing Chapter 7, then having the investor buy the house after the discharge and sell it back to us? We need time to rebuild the business and would only follow through with the sale-buy/back if the bank holding our existing mortgage moves to lift the automatic stay quickly. Conversely, can the sale-buy/back occur before filing C7 with a re-affirmation afterwards? It's a weird question, but its the only solution I've been able to come up with after wracking my brains to come up with a way to save our house. TIA for your thoughts.

    Comment


    • #3
      Saving our house

      You might want to try talking with a bankruptcy attorney and asking about
      doing a Chapter 7 first (to discharge all dischargeable debts) and then
      doing a Chapter 13 (to keep the house). The idea is that if the Chapter 7
      gets rid of the other debts, the Chapter 13 might work for just the
      remaining back mortgage payments and might only go on for a short time,
      especially if your business does improve.

      "Your mileage may vary" <[email protected]> wrote in message
      news:[email protected] om...
      Greetings - My wife and I are trying to replace business we lost when a large client of ours went belly up, but it appears a bankruptcy filing is in our future. We've been in our house 20 years, but don't have much equity in it, since we borrowed against it to fund the business. We've fallen behind in our mortgage payments, car payments, CC payments . . . I can't make a Chapter 13 filing work, as our monthly income is all over the map, and a Chapter 7 filing will only delay foreclosure. I have located an investor who will buy our house and sell it back to us on a land contract. We live in Michigan, which has relatively strong law regarding land contracts. Is there anything illegal, immoral, or fattening with filing Chapter 7, then having the investor buy the house after the discharge and sell it back to us? We need time to rebuild the business and would only follow through with the sale-buy/back if the bank holding our existing mortgage moves to lift the automatic stay quickly. Conversely, can the sale-buy/back occur before filing C7 with a re-affirmation afterwards? It's a weird question, but its the only solution I've been able to come up with after wracking my brains to come up with a way to save our house. TIA for your thoughts.

      Comment


      • #4
        Saving our house

        The house appraised for $370,000 in January, 04 - which seems a bit
        high to us. The assessed value is $298,000, but there aren't a lot of
        comparable sales in the area to use as a yardstick for a 'real' value.

        The appraisal was ordered by a bank when we were considering
        refinancing or getting a second mortgage. I'm guessing the bank
        twisted the appraisers arm to ensure the valuation in their appraisal
        justified the bank's loan.

        We owe approximately $290,000 on the mortgage.

        Thanks again -

        "iNet Lending Group" <[email protected](nospam)inet-lender.com> wrote in message news:<[email protected]>.. .
        On the home, what is the appraised value, what is owed? -- Michael Papp Neustar Financial iNet Lending Group www.iNet-Lender.com MSN Messenger ID - iNet-Lending "Your mileage may vary" <[email protected]> wrote in message news:[email protected] om...
        Greetings - [snip] but its the only solution I've been able to come up with after wracking my brains to come up with a way to save our house. TIA for your thoughts.

        Comment


        • #5
          Saving our house

          the problem with the last advice is that if you talk to an atty about doing
          that, you have just disclosed to him (an officer of the court) that you
          might have intentions of filing in bad faith. The problem with doing the
          sale lease back with the investor is you walk a thin line called a non arms
          length transaction. Now, that is only if the investor is doing a short sale
          and then selling it back to you. If he is paying it off in full and then
          selling it to you, more power to you, no body can say a thing, other than if
          you did a BK 7 theres a remote possibility that someone could look at it as
          a preferental transfer, but with there being a question about equity thats
          highly unlikely. I would talk to a BK atty but I wouldnt ask them if you can
          file in bad faith.

          Corey


          "Fran" <[email protected]> wrote in message
          news:[email protected]
          You might want to try talking with a bankruptcy attorney and asking about doing a Chapter 7 first (to discharge all dischargeable debts) and then doing a Chapter 13 (to keep the house). The idea is that if the Chapter 7 gets rid of the other debts, the Chapter 13 might work for just the remaining back mortgage payments and might only go on for a short time, especially if your business does improve. "Your mileage may vary" <[email protected]> wrote in message news:[email protected] om...
          Greetings - My wife and I are trying to replace business we lost when a large client of ours went belly up, but it appears a bankruptcy filing is in our future. We've been in our house 20 years, but don't have much equity in it, since we borrowed against it to fund the business. We've fallen behind in our mortgage payments, car payments, CC payments . . . I can't make a Chapter 13 filing work, as our monthly income is all over the map, and a Chapter 7 filing will only delay foreclosure. I have located an investor who will buy our house and sell it back to us on a land contract. We live in Michigan, which has relatively strong law regarding land contracts. Is there anything illegal, immoral, or fattening with filing Chapter 7, then having the investor buy the house after the discharge and sell it back to us? We need time to rebuild the business and would only follow through with the sale-buy/back if the bank holding our existing mortgage moves to lift the automatic stay quickly. Conversely, can the sale-buy/back occur before filing C7 with a re-affirmation afterwards? It's a weird question, but its the only solution I've been able to come up with after wracking my brains to come up with a way to save our house. TIA for your thoughts.

          Comment


          • #6
            Saving our house

            "Corey" <[email protected]> wrote in message
            news:[email protected]_s04...
            the problem with the last advice is that if you talk to an atty about
            doing
            that, you have just disclosed to him (an officer of the court) that you might have intentions of filing in bad faith.
            Not a problem. It is not "bad faith" to knowingly file a Chapter 7 to
            discharge your dischargeable debts with the intention of following up with a
            Chapter 13 to pay off any remaining debts over time. People do it all the
            time.

            It is completely legal and any bankruptcy attorney can knowingly and openly
            help with that type of plan because there is nothing illegal or unethical
            about using that strategy.


            Comment

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