Post-petition monthly payment of mortgage
Posted: Fri Jan 19, 2018 2:15 pm
Fellow attorneys:
I filed CH 7 for client. He is married but only he filed for bk.
Client and wife held joint title to the house. We had claimed the $100K
homestead exemption. Trustee's real estate agent appraised the house and
thinks that there is equity in the house. They are in the process of
selling the house. In the interim, client and wife live at the house and
are paying monthly mortgage ($1600 per month) and HOA fee. I estimate that
by the time escrow closes, we would have paid 6 to 9 months of
post-petition mortgage payments. My question is:
1. Can I insist that the trustee pays client back the post-petition
mortgage payments (in addition to the $100K homestead exemption)?
OR
2. Since the total balance owing on the mortgage is much higher at the
time of the filing of BK versus the time escrow closes, can I ask the
trustee to give us the difference between the two principal balance?
Basically, I am saying that as of the day of filing, the total balance
owing on the mortgage is what the trustee has to paid out instead of the
total balance owed as of the day of closing escrow. (In addition to the
$100K homestead).
I will prefer option one and I know client will get more for option one.
Also, not paying for the monthly mortgage is not one of the options that we
have. In the past, I have encountered other cases where the trustee
indicated that he will sell the debtor's home but ultimately did not do
so. Client does not want his house to be foreclosed and destroyed his
wife's credit. Please advise and thank you in advance.
Fellow attorneys: I filed CH 7 for client. He is married but only he filed for bk. Client and wife held joint title to the house. We had claimed the $100K homestead exemption. Trustee's real estate agent appraised the house and thinks that there is equity in the house. They are in the process of selling the house. In the interim, client and wife live at the house and are paying monthly mortgage ($1600 per month) and HOA fee. I estimate that by the time escrow closes, we would have paid 6 to 9 months of post-petition mortgage payments. My question is:1. Can I insist that the trustee pays client back the post-petition mortgage payments (in addition to the $100K homestead exemption)?OR2. Since the total balance owing on the mortgage is much higher at the time of the filing of BK versus the time escrow closes, can I ask the trustee to give us the difference between the two principal balance? Basically, I am saying that as of the day of filing, the total balance owing on the mortgage is what the trustee has to paid out instead of the total balance owed as of the day of closing escrow. (In addition to the $100K homestead).I will prefer option one and I know client will get more for option one. Also, not paying for the monthly mortgage is not one of the options that we have. In the past, I have encountered other cases where the trustee indicated that he will sell the debtor's home but ultimately did not do so. Client does not want his house to be foreclosed and destroyed his wife's credit. Please advise and thank you in advance.
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