Stripping Second Mortgages, A Little Known Debt Relief Option
In recent years, creditors got into the practice of providing second mortgages even when there was little equity to support it. As a result, many people who are in financial trouble now have little or no equity in their homes. Many individuals have found that their mortgages are now much higher than the actual value of the home, thanks in part to these second mortgages.
Second mortgages are nuisances that may be eliminated as part of the bankruptcy process. Stripping a second mortgage is a little known debt relief option available to individuals and families who are faced with the threat of foreclosure. If the market value of your home is less than the balance of your first mortgage, your second mortgage can be treated as unsecured debt in a Chapter 13 bankruptcy. Essentially, your second mortgage falls into the same category as medical bills, credit card bills and other debts that are not tied to assets that could be repossessed.
Is a second mortgage a large part of your financial troubles? The experienced attorneys at Marrs & Terry, PLLC, may be able to help make it go away. Contact us to schedule a consultation. Our services are available to individuals in Flint, Genesee County and the surrounding areas in Michigan.
Eliminating a Second Mortgage Through Chapter 13 Bankruptcy
Chapter 13 bankruptcy requires the creation of a debt repayment plan. This means that some portion of your unsecured debt will need to be paid. The exact amount is calculated based on a number of factors, but it could be as low as 5%. Using this example, you could only be required to pay off 5% of your second mortgage.
Your second mortgage will be stripped from your debts, but you will be required to pay the remainder of your first mortgage at the end of the Chapter 13 debt repayment period, which typically lasts three to five years. After this period, you will no longer have to worry about your second mortgage, or any of the other debts eliminated through bankruptcy.
Bankruptcy can help you stop home foreclosure, eliminate a second mortgage and reach solid financial ground. We are dedicated to making bankruptcy work for you. Contact Marrs & Terry, PLLC online or call us toll free at 866-665-8095.
Second opinions are available to those who have been told by other lawyers that they do not qualify for bankruptcy. If you are missing a debt relief opportunity, we will tell you and we will help you take advantage of it.
