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Tripping the unsecured debt limit for Ch13?
Yes, yes, unless heloc signs off short sale for $$ received.
Sent from my iPhone
On Oct 25, 2010, at 9:55 AM, John Boyko wrote:
A PC owns two pieces of real property.
The principal residence is worth about 1.5mill, with a purchase money 1st TD for 1.2 mill and a recourse 2nd (HELOC) for 500k. His rental unit is valued at 1.1 mil, with total encumbrances of 400k (700k equity). He has less tahn 25k in other total unsecured debt.
He wants to short sell the principal residence and move back into his rental unit.
Question is if he short sells the prinicipal residence for a net estimated 1.4 mill (leaving a 300k deficiency on the HELOC or a potential 300k in debt forgiveness 1099), will that deficiency need to be reported as a unsecured obligation in a future Ch13 plan. If so, would the Ch13 plan have to be at 100% due to the amount of the equity on the 2nd property?
John Boyko
LAW OFFICES OF JOHN M. BOYKO
3521 Lomita Blvd., Suite 100
Torrance, CA 90505
310-750-6789 (Office)
310-300-0263 (Fax)
Yes, yes, unless heloc signs off short sale for $$ received.Sent from my iPhoneOn Oct 25, 2010, at 9:55 AM, John Boyko <jboyko@gmail.com> wrote:
A PC owns two pieces of real property.
The principal residence is worth about 1.5mill, with a purchase money 1st TD for 1.2 mill and a recourse 2nd (HELOC) for 500k. His rental unit is valued at 1.1 mil, with total encumbrances of 400k (700k equity). He has less tahn 25k in other total unsecured debt.
He wants to short sell the principal residence and move back into his rental unit.
Question is if he short sells the prinicipal residence for a net estimated 1.4 mill (leaving a 300k deficiency on the HELOC or a potential 300k in debt forgiveness 1099), will that deficiency need to be reported as a unsecured obligation in a future Ch13 plan. If so, would the Ch13 plan have to be at 100% due to the amount of the equity on the 2nd property?
te 100Torrance, CA 90505310-750-6789 (Office)310-300-0263 (Fax)
The post was migrated from Yahoo.
charset="windows-1251"
yes
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
John Boyko
Sent: Monday, October 25, 2010 9:55 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Tripping the unsecured debt limit for Ch13?
A PC owns two pieces of real property.
The principal residence is worth about 1.5mill, with a purchase money 1st TD
for 1.2 mill and a recourse 2nd (HELOC) for 500k. His rental unit is valued
at 1.1 mil, with total encumbrances of 400k (700k equity). He has less tahn
25k in other total unsecured debt.
He wants to short sell the principal residence and move back into his rental
unit.
Question is if he short sells the prinicipal residence for a net estimated
1.4 mill (leaving a 300k deficiency on the HELOC or a potential 300k in debt
forgiveness 1099), will that deficiency need to be reported as a unsecured
obligation in a future Ch13 plan. If so, would the Ch13 plan have to be at
100% due to the amount of the equity on the 2nd property?
John Boyko
LAW OFFICES OF JOHN M. BOYKO
3521 Lomita Blvd., Suite 100
Torrance, CA 90505
310-750-6789 (Office)
310-300-0263 (Fax)
charset="windows-1251"
Message
yes
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
A PC owns two pieces of real property.
The principal residence is worth about 1.5mill, with a purchase money 1st TD
for 1.2 mill and a recourse 2nd (HELOC) for 500k. His rental unit is valued
at 1.1 mil, with total encumbrances of 400k (700k equity). He has less tahn
25k in other total unsecured debt.
He wants to short sell the principal residence and move back into his rental
unit.
Question is if he short sells the prinicipal residence for a net estimated
1.4 mill (leaving a 300k deficiency on the HELOC or a potential 300k in debt
forgiveness 1099), will that deficiency need to be reported as a unsecured
obligation in a future Ch13 plan. If so, would the Ch13 plan have to be at
100% due to the amount of the equity on the 2nd property?
John Boyko
LAW OFFICES OF JOHN M. BOYKO
3521 Lomita Blvd., Suite 100
Torrance, CA 90505
310-750-6789 (Office)
310-300-0263 (Fax)
A PC owns two pieces of real property.
The principal residence is worth about 1.5mill, with a purchase money 1st TD for 1.2 mill and a recourse 2nd (HELOC) for 500k. His rental unit is valued at 1.1 mil, with total encumbrances of 400k (700k equity). He has less tahn 25k in other total unsecured debt.
He wants to short sell the principal residence and move back into his rental unit.
Question is if he short sells the prinicipal residence for a net estimated 1.4 mill (leaving a 300k deficiency on the HELOC or a potential 300k in debt forgiveness 1099), will that deficiency need to be reported as a unsecured obligation in a future Ch13 plan. If so,would the Ch13 plan have to be at 100% due to the amount of the equity on the 2nd property?
te 100Torrance, CA 90505310-750-6789 (Office)310-300-0263 (Fax)
The post was migrated from Yahoo.