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[CAMFFG] Waiting for positive equity after 1111(b) election
Basically, yes. However, at a 4% interest rate, your client will pay about $555 per month vs $954 (assuming a 30 year term- of course, the monthly payment is likely higher though for less than 30 years under an unmodified loan). Such a reduction in the monthly payment usually turns the property profitable.
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On Jun 11, 2013, at 5:36 PM, Alik Segal wrote:
> The secured creditor made the 1111(b) election. Per statute the secured claim is equal to current loan principal which is about double the property fair market value. Let's assume that FMV is $100K and Principal is $200K.
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> It may take 10 years for the property to double in value. Does this mean that the debtor will have no equity in this property for many years to come--until the property doubles in value?
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> Alik Segal
> Alik.Segal@gmail.com
> 310-362-6157
> California Central District
>
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