QUESTION

Is the trustee’s objection to home purchase prior to filing and walking away from under water mortgage on another reasonable?

Asked on Sep 30th, 2012 on Bankruptcy - New Jersey
More details to this question:
We were underwater and behind on a mortgage for a 1000 sq ft home. During the process of walking away, we were presented with the opportunity to purchase a 3000 sq ft home with a seller finance. Seller is close friend of family. Payments are nearly identical. Trustee is claiming bad faith in the home purchase. Payments are nearly identical by new home is 2.5 times cheaper per square foot and in an area with much higher resale value. Is the trustee's objection reasonable and why?
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5 ANSWERS

Daniel James Wilson
This is deep stuff. If you don't have an attorney get one quick.
Answered on Oct 04th, 2012 at 8:28 PM

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Bankruptcy Attorney serving Myrtle Beach, SC at Law Office of Margaret L. Evans, PC
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Question: Is the trustee's objection to home purchase prior to filing and walking away from under water mortgage on another reasonable? Question Detail: We were underwater and behind on a mortgage for a 1000 sq ft home. During the process of walking away, we were presented with the opportunity to purchase a 3000 sq ft home with a seller finance. Seller is close friend of family. Payments are nearly identical. Trustee is claiming bad faith in the home purchase. Payments are nearly identical by new home is 2.5 times cheaper per square foot and in an area with much higher resale value. Is the trustee's objection reasonable and why? *- YES, absolutely the trustee's objection is reasonable because: 1) you're not lowering your payment; 2) a close family friend may, under certain circumstances, be deemed an "insider"; and 3) its being treated as a "preference" most likely. The trustee's JOB is to avoid fraudulent transfers (undo them) and maximize the proceeds available to the pool of unsecured creditors.*
Answered on Oct 03rd, 2012 at 12:53 AM

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Impossible to say without knowing the trustee's exact position on the matter.
Answered on Oct 02nd, 2012 at 10:22 PM

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Bankruptcy Attorney serving Livonia, MI at Charles J. Schneider, P.C.
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In the context of what kind of bankruptcy and what are his particulars of bad faith.
Answered on Oct 01st, 2012 at 4:03 PM

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Bankruptcy Law Attorney serving Livingston, NJ
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Because how can you afford the new house if you were behind on the old one?
Answered on Oct 01st, 2012 at 4:01 PM

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