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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Currently in chapter 13

Customer Question

I am currently in chapter 13 for the past year and three months.
My primary mortgage loan balance is $163,000 @ 6% and second mortgage loan is $99,000 at 5% for the duration of the bankruptcy then will revert back to 11%.
My question is, will the new cramdown law allow me to get this principal balances lowered or is just for new bankruptcies? Also, since similar properties are selling for about 30% less than what I currently owe when including the 2nd mortgage would a bankruptcy judge only consider the first mortgage loan to value ? The stay has currently been lifted and the first mortgage lender is currently processing a "modification" but at the same time a "foreclosure" date has been set for later in the month. They won't give me an update on the modification request but simply say they will contact me "if" it is approved. I think it should be since I now have steady work but I am getting edgy since the "foreclosure" date is in about two weeks.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Most likely not. It will probably not be retroactive for cases that have already been filed, but we'll wait and see. Since the stay has been modified, your best bet is to work on the loan modification, or else refinance completely to get back in good standing on the mortgage.