Can chapter 13 offer any solutions for upside-down investment property equity?

If you are filing Chapter 13 Bankruptcy Multiple Investment Property, you need to know how investment properties will be handled during the bankruptcy process. Chapter 13 can provide relief for those who own either a home or an investment property that they are upside down on. Being upside down means owing more than the particular house or building is worth. For example, if you bought a home for $100,000 and have a $90,000 mortgage and property values have fallen and the house is now only worth $80,000, you would be considered to be upside down on the loan.

If you are upside down on your loan, then chapter 13 can help with something called a cram down. A cram down involves the lender who carries you mortgage reducing the balance that is owed to the fair market value of the property. So, in the above example, the cram down would involve the balance of the loan being reduced to $80,000. 

It is important to note that you still will need to pay the mortgage balance that is owed if you wish to keep the property. However, after the chapter 13 bankruptcy cram down, that balance will be reduced, which should ideally make it more reasonable for you to make your payments on time and get the loan current. 

To get help determining how to arrange a chapter 13 cram down, or for assistance with any part of the chapter 13 bankruptcy process and legal requirements, you should strongly consider speaking with an experienced bankruptcy lawyer in your area.