Strip Your Second Mortgage And Relieve Debt
Over the last few years second mortgages were given when there was little equity to support the mortgage. Now many people in financial trouble have little or no equity in their homes. The equity that they would have had if they had not gotten the second mortgage has now made them completely upside down with the mortgages being much higher than the home’s value.
How Does Stripping A Second Mortgage Help You?
“Stripping your second mortgage” is a little known debt-relief opportunity for people facing foreclosure. In a nutshell, stripping your second mortgage takes place like this:
If the market value of your home is less than the balance of your first mortgage, you may be able to treat your second mortgage as unsecured debt in a Chapter 13 bankruptcy. This puts your second mortgage in the same category as your credit card bills, medical bills and other debts that are not tied to specific property that could be reclaimed by creditors.
Creative Solutions To Relieve Your Debt
This type of creative financial solution is but one example of what makes Marrs & Terry, PLLC, a special bankruptcy law firm. We do not operate like a bankruptcy mill, crunching clients’ numbers through cookie-cutter molds. Each person’s financial situation deserves a close analysis. That’s where the one-on-one attorney-client interaction that is the norm at Marrs & Terry, PLLC, is beneficial to our Michigan bankruptcy clients.
Reduce Unsecured Debt By Stripping Your Mortgage
In a Chapter 13 bankruptcy, debtors repay some portion of their unsecured debt. The amount is calculated by a number of factors that we will review for you. The lowest repayment percentage of unsecured debt is typically 5%. This client, if he or she had a second mortgage, and if his or her home was worth less than the amount owed on the first mortgage, would then repay only 5% of the second mortgage to satisfy that debt completely.
By stripping the second mortgage a Chapter 13 bankruptcy filer will owe only the remainder of the first mortgage at the end of the debt repayment period of three to five years. The second mortgage receives it’s portion of the unsecured debt repayment and the remaining amount is discharged by the bankruptcy.
Protect Your Future. Contact Our Offices Today.
Call or e-mail the law offices of Marrs & Terry, PLLC, to schedule an initial consultation. We bring more than 18 years of experience to every case and we offer in-home appointments upon request.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.