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A second mortgage can be "crammed down" in a Chapter 13 - whether the property is investment property or the debtor's residence.
Thank you. I am glad to hear that but need to comment the following. Two attorneys, one personally and the other in class, said one can cram down only on investment properties. Can you please double check? Maybe they are right on paper or in a particular scenario, but in reality or in specific scenarios, it is as you say. Regards
I think the following may clear things up for you:1) Until very recently, only second mortgages of investment properties could be crammed down in a Chapter 7. (Currently, in Florida, a debtor's second mortgage on a residence can also be crammed down in a Chapter 7 - but this is being contested.)2) Second mortgages on all real estate - investment properties and the debtor's residence - can be crammed down in a Chapter 13. In fact, cramming down second and third mortgages for a debtor's residence is one of the main reasons for filing a Chapter 13.
I believe the confusion lies in not having distinguished between a Chapter 7 and a Chapter 13 Bankruptcy.
Can you provide the statutes that allow for cramdown in ch7 in both investment and residence and for ch13 on both ch 7 and 13?