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How to Reduce the Balance on Your Mortgage on Multifamily Dwellings and Rental Properties

How to Reduce the Balance on Your First Mortgage for Multifamily Dwellings and Rental Properties

If you are a homeowner of a multifamily dwelling, such as a duplex or a small apartment building, or if you own a house that you rent to someone else, you may be eligible for a "cramdown" through a Chapter 13 bankruptcy filing. This allows you to reduce the amount of your mortgage to the current value of the property and pay it off over five years at a reasonable interest rate, usually the prime rate plus a small percentage.

For example, if you owe $200,000 on a property that you bought for $250,000 but is now worth $100,000, you would be able to cram down the mortgage from $200,000 to $100,000 and will likely pay a lower interest rate. The remaining $100,000 becomes unsecured debt, as the property is not worth as much as you owe. The unsecured debt would be wiped out by the discharge after you have completed your Chapter 13 payment plan. Our New Jersey bankruptcy lawyers can help you determine if your property qualifies for a cramdown of your mortgage as part of a Chapter 13 bankruptcy.

Cramming down your mortgage can relieve you of both of these problems as the deficiency is wiped out as part of your unsecured debt and the mortgage is paid at the end of the five-year Chapter 13 payment plan. At the end of five years, you own your property outright with no mortgage. It is paid off in full. For people with "underwater homes," Chapter 13 bankruptcy may be an ideal solution.

Contact experienced mortgage cramdown attorneys with offices in Paterson, Jersey City and East Orange today to find the solutions to your financial problems. Call for a free consultation at 973-677-9000 or 888-827-5493.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
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Goldman & Beslow LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

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EAST ORANGE
OFFICE
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
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NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
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