Can I strip down my mortgage in bankruptcy?
Yes, depending on the circumstances. A strip down (reduction of the mortgage) or strip off (elimination of the mortgage) can occur if the real estate is worth less than what is owed on it. A determination of your ability to strip depends on a strict analysis of: a) the value of the real property; b) the outstanding amounts owed on the mortgage; c) who the obligatory are; and d) whether the property is the primary or principal residence of the Debtor or if it is investment property. Along with a reduction of the mortgage, the interest rate may also be reduced and/or changed from an adjustable interest rate to a fixed interest rate. For further clarification about filing for bankruptcy, please feel free to contact us and one of our bankruptcy attorneys in Miami will be happy to help you.
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