Cramdown Mortgages

Chapter 13 provide a way to cramdown second trust deed on investment property. We are in a time of very high loan balances that may be in default and very low property values. in many cases the property may be "under water" that is its loans will exceed the value of the property.

Recently we consulted with a homeowner in Riverside County who had an investment property with a mortgage equal to $ 520,000. The current fair market value of the property is $ 360,000, an amount $ 160,000 less than the value. The owner has attempted a loan adjustment with the lender but it refused to make any concessions. The lender is getting ready to foreclose.

We recommended the parties file a Chapter 13 bankruptcy proceeding. In this proceeding we work out a 3 to 5 year plan to pay off any other debt they may have in small amounts. The loan amounts on each of the properties is reduced to the fair market value (called a "cramdown"). The loan payments are adjusted accordingly. Once accepted this plan will reduce their indebtedness by
$ 160,000, lower their monthly payments and allow them to keep the property. The legal fee for this service is approximately $ 3,500. You are represented throughout by a licensed California attorney.

This opportunity will only last as long as properties are under water. Act quickly to take advantage of his historic imbalance. You must still be in title to file this proceeding. Filing of the proceeding will stop any pending foreclosure. Certain restrictions apply. CAll us for a free consultation at
877-602-6869.