Relief for Real Estate Investors
- February 8, 2013
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If you are an investor who fell victim to the real estate market crash, you can reduce your investment property mortgage and interest. If your property is “under water” or “upside down”, you may be able to limit the amount you must repay to the amount the property is appraised at presently, rather than the inflated price you paid when the market was artificially inflated. Not only will investors benefit from the reduced principal but will also benefit from paying a reduced interest rate, typically the prime rate plus 1-3%. Unlike the continued liability for any deficiency in a short-sale, there is no continued liability for the principal reduction when using this cram down method, even if the property is later foreclosed on. This opportunity exists through Chapter 13 bankruptcy. For more information on Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, foreclosure or consumer debt issues visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.