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30 year interest only note
Your question is not entirely clear. I think your bemoaning the
fact that the debtor's mortgage payment is lower after modification
and so instead of a higher payment with some of the payment going
towards principal now it is a lower payment providing extra money for
the debtor to pay towards class 5 general unsecured creditors. The
U.S. Trustee's Office position is that unless you know what the trust
deed payment will be in the future you should use the current payment
number. Whatever the trust deed payments are, be it interest only
or amortized, the payments due under the terms of the note go on line
47. I think you are stuck with the contractually obligated lower
amount. That is a problem with modifying prior to filing a bankruptcy
case.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
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On Tue 13/07/10 3:51 PM , "Steven B. Lever" sblever@leverlaw.com
sent:
I filed a Chapter 13 case and was finally supplied the Debtors'
modified
promissory note on their primary residence. It is fixed until 2011
and
then becomes an adjustable rate mortgage, however, IT IS INTEREST
ONLY
FOR 30 YEARS. I've never seen such a note, but I guess in the
aftermath
of the mortgage insanity this should not surprise me. Nevertheless,
it
distresses me.
If this were a 30 year fixed mortgage the Debtors could deduct this
from
their DMI. It is not.
Question : Can I argue for the Debtors to make house payments as if
this were a fully amortized mortgage? Or more to the point, would I
have any success?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
Links:
[1] mailto:cdcbaa@yahoogroups.com?subject30 year interest only note
[2]
The post was migrated from Yahoo.
I filed a Chapter 13 case and was finally supplied the Debtors' modified
promissory note on their primary residence. It is fixed until 2011 and
then becomes an adjustable rate mortgage, however, IT IS INTEREST ONLY
FOR 30 YEARS. I've never seen such a note, but I guess in the aftermath
of the mortgage insanity this should not surprise me. Nevertheless, it
distresses me.
If this were a 30 year fixed mortgage the Debtors could deduct this from
their DMI. It is not.
Question : Can I argue for the Debtors to make house payments as if
this were a fully amortized mortgage? Or more to the point, would I
have any success?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
The post was migrated from Yahoo.