Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Yes, the cram down/strip down applies to investment properties and second homes. This is done as part of the Chapter 13 plan. Currently, Bankruptcy Judges can modify (“cram down,” “strip down”) the terms of mortgages on second, third homes, investment properties, etc. but do not have the power to do that for the primary home. In a cram down situation, the Court has the power to strip down the amount outstanding on a mortgage to the current appraised value of the home, then payment can be modified, interest rates can be modified allowing the borrower to make payments that she/he can afford.
I receive your answer it was satisfactory however I have contacted several local attorneys to confirm the answer and they all have disagreed can you advise me where can Ijustify it. Is there any additional fees please advise me.
Hi Luis: I would be more than willing to clarify. My understanding is that the 1-4 family is your investment property. Under current bankruptcy rules, you can modify the terms of that loan. This the cram down/strip down situation. Thus, I stand by my previous assessment of your case. See 11 U.S.C. Section 1322 (read the whole section); Also see subsections 1322(b)(2); 1322(b)(3)and (b)(5); 1322(c)(1)and (2): http://www.law.cornell.edu/uscode/uscode11/usc_sec_11_00001322----000-.html
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).