Cramdown of Mortgages on Principal Residences in Bankruptcy

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Argument For Allowing Debtors To Pay Secured Value Of Homestead Through Chapter 13 Bankruptcy For Debtors who file Chapter 13 Bankruptcy, the Bankruptcy Code permits them to Cramdown or pay only the Secured Value of Fair Market Value of an Investment Property or Non Homestead Property through the Chapter 13 Bankruptcy Plan. However, Bankruptcy Code Section 1322(b)(1) states the “plan may modify the right of holders of secured claims, other than a claim secured only by a security interest in real property that is the Read More +

Current Landscape of Loan Modifications and Foreclosures

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Resets May Lead To Higher Loan Modification Defaults By Jay Weller According to The Mortgage Monitor Report by Black Knight Financial Services for February, 2014, about 95% of rate reduction modifications are still facing resets. Although Loan Modifications have been declining for more than a year, Loan Modifications through the Home Affordable Modification Program (HAMP), a program under the jurisdiction of the Federal Housing Administration, have been increasing, largely because of modifications the FHA made to increase eligibility of Homeowners. Black Knight Financial Services claims Read More +