Craming down rental property in ch 13 and paying off through plan
Posted: Sat Oct 30, 2010 12:16 pm
Hello everyone:
PC has a rental property with an outstanding loan balance of $400K (only one loan) and FMV of $130K. He has not paid his mortgage for appx. 5 months and wants to see if it's possible to "cram it down" in a ch 13 to its current FMV and pay it off through the plan during the next 5 years. Will the current interest rate continue to apply? Would the answer be different if he was residing there before we file? I think I read somewhere that the cram down does not apply to primary residence in a ch 13 case. Q2: does he need to show a positive cash flow before he is allowed to cram it down?
Thank you
Sofya Davtyan
Attorney at Law
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