note on my home? - Posted by Edna (MD)

Real Estate Investing
1

Posted by Alex Gurevich, TX on July 12, 1999 at 10:03:03:

I am not a lawyer, but if you are still on a plan I don’t believe you can:

  1. incur debt without your trustee’s permission.
  2. have cash on hand (unless you are using it to do an accelerated pay on the plan).

You may want to check with your bankruptcy lawyer.

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note on my home? - Posted by Edna (MD)

Posted by Edna (MD) on July 11, 1999 at 15:58:04:

Can I create a note (10k) on my home, value is 130k I owe 80k,If so who do I sell It to?
My credit is poor,(filed chapter 13- Feb 99)
Thanks.

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Re: note on my home? - Posted by Michael Morrongiello American Note

Posted by Michael Morrongiello American Note on July 12, 1999 at 17:38:28:

Edna:
Yes you can create a note against your home. However the reality is that there will be FEW if any interested parties in buying such a note. Creating paper between yourself and some other entitiy in which you may have an interest in the hopes that you can then “sell” the note for cash is for lack of a better term nothing more than an orchestrated “scheme” for those that cannot adhere to a traditional refinancing.
It is not a “squeaky clean” transaction for the paper buyer and It Rarely works. As a paper investor ,the only time we might consider this scenario is if the LTV is extremely conservative (well under 65%.

Michael Morrongiello

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Re: note on my home? - Posted by John Behle

Posted by John Behle on July 12, 1999 at 14:49:48:

Yes, you can create a note on your home. If you are still in the bankruptcy, you have to work through the trustee. If you are out of it, you can create a note and use it to buy other property, pay someone, sell for cash, etc.

The bankruptcy is a challenge. It limits the amount of note buyers, but there is some good equity, so someone local should take an interest.