We have a condo we'd like to keep, we are still current on the mortgage. We also own another that we will not be keeping. On the one we want to keep we have a HELOC, if we keep this condo, do we have to keep the HELOC, or can that be included in the bankruptcy?
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8/5/08 - Filed Chapter 7
9/10/08 - 341 Meeting - It went great
11/10/08 - Last day for Objections
11/12/08 - Discharged & Closed!
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I don't know all the details, but my understanding is the only way to cram down (and be able to discharge) a 2nd, is if you have negative equity on the 1st mortgage. Others, please chime in.You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing
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The only way to strip "mortgage" or other "voluntary" liens off your primary residence is this.
1. File chapter 13
2. The value of the property must be less than the 1st mortgage. There cannot be as much as 1$ of equity that would cover the 2nd mortgage/Heloc.
To answer your next question, you can no longer cram down liens on real property (i.e. cram down is the reduction of the balance owed to the current market value).Comment
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