Experience Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint). The Markus webpage also contains more information on
Education/Credentials J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
Question Our first mortgage on our 2nd property (Rental, but currently unoccupied)including back- payments is $345,000. My 2nd mortgage (equity credit line) is 80,000. Can I strip my loan down to 300,000 (the current market value)? Do I have to pay this whole amount within 3-5 years of payment plan? . Should I pay an interest on the amount owed during this period? Would the rental income contribute to bringing down the $300,000? Thank you Mr.Markus.
Answer Under the facts as you've presented them, you should be able to eliminate the lien of the 2nd mortgage, and you can possibly strip down the first to $300,000, but you would then likely have to pay off that $300,000 over the course of the Plan (a maximum of 60 months).
Also, bear in mind that if your total secured debt on all your properties is over $1,010,000, you are not eligible for Chapter 13 (you may be able to exclude the under-water 2nd on your rental property from that analysis, but then it gets counted towards the UNSECURED debt limit of approximately $337,000. (11 U.S.C. 109(e))
