Chapter 13 And Bank's Thoughts On Buying House

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So if you have a family that is going through Chapter 13 and the house is in the repayment plan. Is it worth contacting the bank to offer them money for the house that they now know they aren't going to get, at least that much?

For example, if the mortgage was 100,000 and the bank is talked down to 20 cents on the dollar in a four year Chapter 13 plan, they would only be getting $20,000 or so...so is it possible to contact the bank and say "hey, what if we offer you $30,000 for the home?"

Is this possible?

Best Regards,
[addsig]

Comments(1)

  • Tedjr3rd February, 2004

    Where did you get the idea that the bank would only get 20 cents on the dollar. Secured creditors get their entire payment due. They are paid back over time for the prepetition late payments, Unsecured creditors in some plans get only a percentage of what is owed and some get 100% in other plans. Not all BK's are the same. Even in Chapter 7 the trustee can only sell for what is owed plus costs or he is forced to abandon the property back to the debtor. This is all based on personal experience and I am no lawyer but have been in 3 13 cases and one 7. If you have any other questions i would be glad to help

    Good LUCK and Thank You
    Hope this helps some
    Ted Jr

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