giving up home in chapter 13

[Dank81]

What is the name of your state (only U.S. law)? TN
My husband & I are very much in debt and plan to file chapter 13. My daughter is in the process of purchasing a home and has invited us to live with her for a few years until we get back on our feet. We recently tried to refinance our home from an adjustable rate, but found our property has lost 30,000 in value due to the area being rezoned as commercial - so at this point we owe more than our house is worth. We received a notice from our mortgage lender that our home is being put up for auction at the end of this month. We see the lawyer next week to begin the chapter 13 filing, but we are still living in our home. We want to be able to give the house back to the mortgage lender without being penalized (other than bad credit).

Can we give up our home on a chapter 13 without having to pay back what we're behind? If so, how long after filing chapter 13 do we have before we have to get out - our daughter's closing isn't scheduled until the middle of Oct.

[bigun]

You'll likely have months to get out since, the mortgage company must follow state law as it proceeds with foreclosure.
Any deficiency balance is now unsecured debt {in a 13} and is on the same footing with credit cards.
Are you sure you can't qualify for a Chapter 7?

[nrknlknek]

Typically, you will have several months before an eviction order is asserted, so that isn't the issue. You shoud consult with counsel regarding your BK options. If you qualify, Chapter 7 may be a better alternative than Chapter 13. The issue with Chapter 13 is that a large percentage of the "plans" fail over time because people cannot comply.