Chapter 13 - 2nd mortgage cram down instead of lien strip?

[catleg]

Is it possible that the attorney is trying to preserve the tax deductibility of the 2nd mortgage interest?

[justbroke]

Is it possible that the attorney is trying to preserve the tax deductibility of the 2nd mortgage interest?

I don't think any of the strategies actually saves the debtor money -- they are all a wash. However, keeping it secured and paying something towards it each month, may be better in case the case is dismissed before discharge. That way, they wouldn't be too far in arrears.

The tax benefit for $12,000 in an additional itemized deduction, would yield only $3,000 in tax benefits. Oh, and that $3,000 would be disposable income... so it goes right back into the pot in a Chapter 13. I think that's an interesting Strategy catleg.