The Mellor Law Firm, APLC

California Real Estate, Construction, Bankruptcy, Foreclosure and Business Litigation Lawyers

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Call: (951) 221-4744

  • Our Firm
  • Attorney Profile
  • Practice Areas
    • Real Estate Law
    • Construction Law Attorney
    • Foreclosures
    • Business Law
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
    • Contract Disputes
    • Insurance
    • Loan Modifications
    • Personal Injury & Wrongful Death
  • Case Handling
  • Clients
  • Blog
  • Contact

Mortgage Cram Downs California in Chapter 13 Bankruptcy

April 25, 2012 by Leave a Comment

You may be able to reduce your mortgage principal on investment or rental property.  It does not apply to a home you use as your principal residence.

A mortgage cram down allows you to reduce the principal balance of the mortgage to the value of the property.  You can use a Chapter 13 bankruptcy for this purpose.

A Chapter 13 cram down may help you.  If you owe for example, $500,000 on the investment property and its value is $250,000, through the Chapter 13 plan you pay to the mortgage lender the $250,000 rather than the $500,000.  The remaining $250,000 becomes unsecured debt and you will likely pay a small portion of that part through the plan and the rest will be discharged at the completion of the plan.

The drawback is that the courts will require the payoff of the balance of the crammed down mortgage during the Chapter 13 repayment period, typically three (3) to five (5) years, unless a refinance is achieved within two (2) years to pay off the mortgage at the crammed value.

Looking to file for Chapter 13? Contact Riverside bankruptcy attorney, Allen Sanders at the Mellor Law Firm.

Filed Under: Bankruptcy Education

Leave a Reply Cancel reply

You must be logged in to post a comment.

Call Us: 951-222-2100

Consultations available in-office or over
the phone. Speak to one of our leading attorneys in California today.

Recent News

How a Business Attorney Can Help You Sell Your Business in California

May 31, 2023 By Mark Mellor

The opportunity to sell your business can either be exciting or stressful—or both all at once! You want to make sure you get the best deal possible so you can move on to bigger and better things. That’s why it’s important to have business lawyers on your side who know the ins and … Read More...

Dealing With A Contract Breach? These Are The First Steps You Need To Take

April 24, 2023 By Mark Mellor

Whether you have knowingly or accidentally breached a contract, it is important to take immediate action. Failing to do so could result in serious legal consequences and expensive fines.  As contract dispute attorneys, we've compiled the first steps you need to take when you … Read More...

What Are The Recent Construction Laws And Changes: How Do They Impact You As A Contractor

April 19, 2023 By Mark Mellor

Effective 2022 and 2023, several new regulations have been passed in California for the construction industry, including increased safety measures, environmental protection rules, and permit fines. Learn how these construction laws affect your company and how to avoid any fines … Read More...

Follow Mellor Law Firm

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Our Areas of Practice

  • Real Estate
  • Construction Law Attorney
  • Mechanic’s Lien – Stop Notice
  • Foreclosures
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Navigate

  • Home
  • Our Firm
  • Mark Mellor
  • Practice Areas
  • Case Handling
  • Clients
  • Resources
  • Contact
  • Blog
  • Privacy Policy

Practice Areas

  • Real Estate
  • Construction Law Attorney
  • Mechanic’s Lien – Stop Notice
  • Foreclosures
  • Business Law
  • Contract Disputes
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Insurance
  • Lien Stripping Bankruptcy
  • Loan Modifications
  • Personal Injury & Wrongful Death
  • Property Ownership

Recent Posts

  • How a Business Attorney Can Help You Sell Your Business in California
  • Dealing With A Contract Breach? These Are The First Steps You Need To Take
  • What Are The Recent Construction Laws And Changes: How Do They Impact You As A Contractor
  • Understanding and Avoiding Mortgage Fraud: Here’s Everything You Need to Know

Follow Us

    • Facebook
    • LinkedIn
    • RSS
    • Twitter
    • YouTube

Contact our offices

The Mellor Law Firm, APLC
6800 Indiana Avenue, Suite 220
Riverside, CA 92506
Phone: (951) 221-4744
Fax: (951) 222-2122
10.0Mark Albert Mellor

The Mellor Law Firm, APLC © 2023. All Rights Reserved.