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Ensnared in a real property case...with assets
Yes, this does seem like a train wreck waiting to happen. I would look into the possibility of converting to Chapter 13 and do the full 60 months, if there isn't a lot of disposable income, just to meet the liquidation analysis test and make the plan confirmable. If no disposable income, perhaps siblings can provide family contribution since they also have something at stake here?
Sent: Tuesday, October 19, 2004 5:21 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Ensnared in a real property case...with assets
Hello, all. Long-time lurker, first-time caller.
Single Debtor (my client) is joint owner of real property with her two
siblings. Debtor does not pay taxes, pay mortgage, live in property
nor otherwise enjoy it. She co-signed to help a sibling qualify for
the home a few years ago. Debtor client told me, and Schedules A/D
state, that:
FMV: 300K
Lien: 220K
Owned: Joint with 2 others
My client filed this Ch 7 in order to stop a garnishment and discharge
20K of credit card debt. The 341a hearing has occurred, and was
surprisingly mundane.
As it turns out, the refi that would have made the lien amount 220K
never completed and is stalled, pending this chapter 7. The appraisal
for the refi was done not in 7/04 as I was told but in 7/03. As a
result, Ch 7 Trustee believes that:
a) debtor is on loan with one sibling
b) FMV is actually 350K (due to post-appraisal appreciation) and
c) loan balance is 178K (it will be 220K post-refi)
...and wants to force a sale.
Only assumption a) is incorrect, as the facts unfold. Debtor is on
title but not on loan. The sibling who lives in it is on loan, before
or after this current stalled refi.
Anything leap to mind here, or do I have to continue watching this
train wreck occur? A Motion to Dismiss doesn't seem like a winner.
Thanks in advance.
Hale Andrew Antico
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The post was migrated from Yahoo.
Hello, all. Long-time lurker, first-time caller.
Single Debtor (my client) is joint owner of real property with her two
siblings. Debtor does not pay taxes, pay mortgage, live in property
nor otherwise enjoy it. She co-signed to help a sibling qualify for
the home a few years ago. Debtor client told me, and Schedules A/D
state, that:
FMV: 300K
Lien: 220K
Owned: Joint with 2 others
My client filed this Ch 7 in order to stop a garnishment and discharge
20K of credit card debt. The 341a hearing has occurred, and was
surprisingly mundane.
As it turns out, the refi that would have made the lien amount 220K
never completed and is stalled, pending this chapter 7. The appraisal
for the refi was done not in 7/04 as I was told but in 7/03. As a
result, Ch 7 Trustee believes that:
a) debtor is on loan with one sibling
b) FMV is actually 350K (due to post-appraisal appreciation) and
c) loan balance is 178K (it will be 220K post-refi)
...and wants to force a sale.
Only assumption a) is incorrect, as the facts unfold. Debtor is on
title but not on loan. The sibling who lives in it is on loan, before
or after this current stalled refi.
Anything leap to mind here, or do I have to continue watching this
train wreck occur? A Motion to Dismiss doesn't seem like a winner.
Thanks in advance.
Hale Andrew Antico
The post was migrated from Yahoo.