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Newbie Question: Cramdown of Real Property in Chapter 13 and 11
If debtor moves out of residence into one of her rental homes and then does
a 13 to strip 2nd and cram 1st on former residence, is there an amt of time
debtor must be out of former residence for the 1st to be crammed?
First must then be paid in full during plan term. Question, then: who
determines new mortgage amounts, interest rates, etc?
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Don't follow the comment. You will never strip a first.
Dennis McGoldrick
350 S. Crenshaw Bl., #A207B
Torrance, CA 90503
On Feb 2, 2010, at 7:08 AM, attorneychristine@gmail.com wrote:
So, the only beneficial way is when the Creditor neither owns or holds the note? Then, we can wholely strip the first and make it unsecured? Then, any remainder gets discharged at the end of the plan?
Sent from my Verizon Wireless BlackBerry
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You cannot strip a first on a residence.
To confirm a ch 11 plan you must convince the court with evidence, that the debtor has the means to make payments. It would be very difficult to prove the debtor could pay one balloon in five years. So, no, I suggested 60 payments then a balloon.
Dennis McGoldrick
350 S. Crenshaw Bl., #A207B
Torrance, CA 90503
On Feb 1, 2010, at 9:29 PM, "Cameron Totten" wrote:
Thanks for the reply. When you say amortize over 30 and make it due in 5, does that mean propose a 5 year plan and not have the first payment on the newly amortized mortgage due until after the plan ends? Could the unsecured portion that is bifurcated off be paid with the rest of the unsecured debts as part of the 5 year plan?
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Thanks for the reply. When you say amortize over 30 and make it due in 5, does that mean propose a 5 year plan and not have the first payment on the newly amortized mortgage due until after the plan ends? Could the unsecured portion that is bifurcated off be paid with the rest of the unsecured debts as part of the 5 year plan?
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Ch 11 is tricky. The longer the plan, the longer the debtor is paying quarterly fees, and staying in bk. Maybe ammortize the loan over 30 years and make it due in 5.
Both 13 and 11 have the same residence restrictions on modifications.
Dennis McGoldrick
350 S. Crenshaw Bl., #A207B
Torrance, CA 90503
On Jan 31, 2010, at 9:03 PM, "cameron_totten" wrote:
I continually have potential clients who want to cramdown/stripdown their first mortgage on either their residential property or rental property. It is my understanding that you cannot do that in either case unless you pay off the entire secured portion (market value) during the life of the plan which in a 13 is either 3 or 5 years? Is that correct? If so, how does anyone ever cramdown or modify real property mortgages?
Also, because there is no 3 or 5 year limitation in a Chapter 11, can you (practically speaking) have a 20 or 25 year plan that will actually get confirmed which would allow for the secured portion to be paid in the plan (with reasonable plan payments)? Thanks.
Ch 11 is tricky. The longer the plan, the longer the debtor is paying quarterly fees, and staying in bk. Maybe ammortize the loan over 30 years and make it due in 5.Both 13 and 11 have the same residence restrictions on modifications.Dennis McGoldrick350 S. Crenshaw Bl., #A207BTorrance, CA 90503On Jan 31, 2010, at 9:03 PM, "cameron_totten" <tottenlaw@sbcglobal.net> wrote:
I continually have potential clients who want to cramdown/stripdown their first mortgage on either their residential property or rental property. It is my understanding that you cannot do that in either case unless you pay off the entire secured portion (market value) during the life of the plan which in a 13 is either 3 or 5 years? Is that correct? If so, how does anyone ever cramdown or modify real property mortgages?
Also, because there is no 3 or 5 year limitation in a Chapter 11, can you (practically speaking) have a 20 or 25 year plan that will actually get confirmed which would allow for the secured portion to be paid in the plan (with reasonable plan payments)? Thanks.
The post was migrated from Yahoo.
I continually have potential clients who want to cramdown/stripdown their first mortgage on either their residential property or rental property. It is my understanding that you cannot do that in either case unless you pay off the entire secured portion (market value) during the life of the plan which in a 13 is either 3 or 5 years? Is that correct? If so, how does anyone ever cramdown or modify real property mortgages?
Also, because there is no 3 or 5 year limitation in a Chapter 11, can you (practically speaking) have a 20 or 25 year plan that will actually get confirmed which would allow for the secured portion to be paid in the plan (with reasonable plan payments)? Thanks.
The post was migrated from Yahoo.