Debtor May Strip Unsecured HOA Lien Off Homestead

Debtors living in homes with upside down mortgages can strip their second mortgages off their homestead in a Chapter 13 bankruptcy when their home is worth less than the first mortgage balance. What if the debtor does not have a second mortgage but owes his HOA dues and assessments incurred prior to bankruptcy, and the HOA has recorded a lien to secure repayment. Continue reading

Mortgage Modification’s Amazing Result: Bank Forgives First Mortgage: Debtors’ House Now Free And Clear

This past week I witnessed one of the most extraordinary results  imaginable in a Chapter 13 mortgage mediation when two married homeowners were able to combine several new mortgage incentive and rebate programs to achieve the ultimate mortgage modification possible…a total and complete write off of their principal balance.  By the time all the mortgage program benefits were applied this bank agreed to strip off the homeowners’ entire first mortgage. The mortgage balance is 0; this family owns their house free and clear.

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Mortgage Modification Or Chapter 13 Bankruptcy: Which Comes First?

Some of my bankruptcy  clients are considering Chapter 13 bankruptcy to save their homes and strip off a second mortgage. These people are simultaneously investigating a modification of their first mortgage through one of the mortgage modification programs offered by their mortgage lender and the government’s mortgage initiatives. Continue reading

Chapter 13 Cram Down Of Investment Mortgage Unfair To Unsecured Creditors

Chapter 13 bankruptcy provides debtors the ability to cram down mortgages on their investment property provided that the investment mortgages be paid in full during the Chapter 13 plan. The cramdown opportunity is designed to help the debtors save their investment real estate as part of a reorganization, but the opportunity requires good faith and fairness to other creditors.  Continue reading