chapter 13

Chapter 13 Mortgage Mediation Seminar Reports Program Success

09/19/11

Last month I attended a seminar about mortgage modifications in Chapter 13 bankruptcy. There were several points that warrant a series of blog posts.

One speaker compared mortgage mediation in the context of a Chapter 13 bankruptcy with mortgage mediation in a state court foreclosure. He explained why the homeowner usually has a better chance to save his home by filing Chapter 13 and requesting mortgage mediation.

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Chapter 13 Mortgage Cram-Down On Multi-Family Building When Debtor Lives In One Of Units

08/31/11

Chapter 13 debtors can cram-down the value of mortgages on properties other than their principal residence. The debtor initiates the process by filing a motion to value the underlying property. If the property is under water the court will modify the mortgage to reduce the loan balance to the current property value.

A Florida bankruptcy court considered a motion to value on a debtor’s duplex. The debtor lived in one unit and rented the other unit.

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Debt Ceilings Make Chapter 13 Cram-Downs Difficult To Accomplish

08/27/11

People get excited about the prospect of cramming down mortgages on investment properties in a Chapter 13 bankruptcy. I received at least two calls this past week from people interested in using Chapter 13 to both strip a second mortgage on their homestead and reduce the mortgage balance on at least one rental property.

Sounds like a plan, but unfortunately the plan usually does not work because of Chapter 13 bankruptcy’s unsecured debt ceiling. You cannot file Chapter 13 bankruptcy if your total unsecured debt exceeds about $330,000.

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Mortgage Mediation In Chapter 13 Bankruptcy Sabotaged By Lender Document Requests

08/06/11

Have you been jerked around by mortgage banks in court ordered mortgage mediation in Chapter 13 bankruptcy cases? Another local attorney spoke with me this week about how big banks are playing debtors and their attorneys in court ordered mortgage modification mediation.

The attorney’s client filed Chapter 13 in Orlando where the courts have for some time ordered mortgage lenders to participate in mediation regarding modification of Chapter 13 debtor’s home mortgages.

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