Stripping Second Mortgages
Stripping second mortgages
A few years ago home prices were skyrocketing. It was believed that home prices always rose and never declined. Suddenly, not only home prices but the entire economy went into a tailspin.
Second Mortgages
If you are like many who took out a second mortgage, confident that you could pay it, you may now be "under water" on your home. It may be worth less than even the original mortgage you owe. You may have lost your job and now face losing your home to foreclosure.
Chapter 13 bankruptcy
may offer you more benefits than you know. It may be possible to "strip" the second mortgage from your home. If the fair market value of your home is now worth less than the original mortgage that you owe, the second mortgage is "unsecured." Unsecured debts are those that are not backed by any piece of personal or real property. These are the kinds of debts that are discharged in bankruptcy.
Chapter 13
So called "lien stripping" is not possible in Chapter 7. Chapter 13 is a form of bankruptcy that allows you to keep more of your possessions - usually including your home - although you must make payments over a period of three to five years on your secured debts.
So Chapter 13 may allow you to not only save your home, but discharge a second, or even third mortgage you may have.
Orlando Mortgage Bankruptcy Lawyers
Of course, the lender may oppose our motion to avoid the lien. We must demonstrate to a judge that the value of your home is low enough to strip the second mortgage. We may need to arrange more than one appraisal to prove this.
Florida Lawyer Stripping Second Mortgage Debt
The law office of Nardi & Nardi, P.A., has more than 25 years experience. Our attorneys are members of local bar associations, and have a variety of legal teaching and law practice experience.
Protect your rights, your family, and your future. Call now at (407) 478-0074
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