Successfully Avoiding a 2nd Trust Deed on a Rental or Investment Property.

[Jailhouse]

Has anyone read anything or heard anything about an attorney that is currently trying to strip a 2nd trust deed on a property other than the debtor's primary residence?
I read somewhere about an attorney attempting to do so, but have not been able to find it anywhere. I read on this forum that HHM said it is not possible. But as we all know... nothing in law is impossible! It is constantly changing!

If anyone has heard anything on this topic, dont be shy and help a brotha out!

[HHM]

It is NOT possible in a chapter 7.

I can't think of any post where I would have said it is "impossible", in a chapter 13 since that is not the case. There is a difference between stripping a 2nd trust deed and cramming a 2nd trust deed.

You CAN strip a 2nd trust deed on any real estate in a chapter 13 so long as the value of the property is worth less than what is owed on the 1st trust deed. The problem comes in when you try to Cram a 2nd trust deed.

A cramming example
Value of property $300,000
1st Trust deed $270,000
2nd Trust deed $90,000
In a chapter 13, you MAY cram down the second deed of trust so $30,000 (because that is how much of that 2nd mortgage is actually secured). However, the "catch is", you MUST pay that $30,000 during the 60 month chapter 13 plan. Thus, from a practical perspective, it may be hard for the debtor to do that and meet all other requirements of a chapter 13.

[Jailhouse]

HHM,
My apologies. You did not say it is impossible... but you did say in the thread below, "No, The lien strip only applies to your primary residence."

http://www.bkforum.com/showthread.php?t=29728

Which brings me back to my question. Can you strip a lien on a property other than your primary?
I understand you cannot strip on a 7 (at all), but CAN you strip on a lien that is encombered on a property other than your primary?

BTW: I was not aware of the cram down, so thank you for that "EDUCATION".

Please, let me know your thoughts on the lien strip for a rental.

[Jailhouse]

Attention HHM:

I have been thinking about what you said on the "cram down". I was speaking with an attorney regarding this issue and he was not aware of the cram down in a chapter 13. He mentioned that you can "cram down" in a chapter 11, but did not know much about the cram down in a chapter 13.

Which brings me to a question for you regarding that issue.
Assuming that the attorney/ paralegal can generate a plan that works within the limits of the court, what is the proceedure for a cram down?
Do you file a motion?