Mike H wrote:
Bankruptcy (ch7 or 13) can be viewed as a form of "cram down" when
more is owed on the property than the property is worth. It is ideal for
the current situation.
For example, if the judgement is for $200,000 but the property is only
worth $75,000 (putting aside the homestead exemption issue to simplify).
One files Ch 7 listing the asset value as $75,000 and the debt as unsecured
In this situation, $125,000 gets wiped out and now only the value of
the property is left for the foreclosure sale. At this point try to refinance
and pay it off, or do a chapter 13 and try to get a loan mod on the remaining
balance. This is called a " Ch 20".
Factor in the Homestead exemption and it could be even better! Don't
give up until you have used up all your options. KEEP YOUR HOME!
Mike Can you provide a website that has more information on this?