Eliminating A Second Or Third Mortgage As Part Of A Chapter 13
During the housing bubble, you may have taken out a second mortgage on top of a standard mortgage to buy a home that was more expensive than you could really afford, or added an additional mortgage to get the extra money to use as you saw fit.
When the bottom fell out of the housing market and the economic recession hit, your house may suddenly have become worth far less than what you’re paying for it. If you are having a hard time keeping up with all of these payments, you may be eligible to eliminate the second and third mortgages as part of your bankruptcy filing.
At Lefkovitz & Lefkovitz, we have helped thousands of people in the Nashville area reduce their overall costs and keep their homes by filing Chapter 13 bankruptcy. We understand how the Tennessee bankruptcy system works and what can and cannot be done to improve your situation. Our law firm accepts the cases most other lawyers turn away. If there is a way to help you out of your financial difficulty, we will find it.
How Can I Get Rid Of My Additional Mortgages?
If your house is worth less than the price of your original mortgage when you file Chapter 13 bankruptcy, your additional, or junior mortgages, are converted to unsecured debt through a process called lien stripping. This means that they are ranked as less important when it comes to which of your creditors gets paid through your payment plan. If these debts aren’t paid off by the time your payment plan is completed, they are discharged, along with the rest of the unsecured debt.
Our attorneys will review your finances with you and help you get an appraisal on your home. If you are eligible to eliminate your second mortgage, or even your third mortgage, we will explain the entire process to you and walk you through it, step by step. Our goal is to get you through bankruptcy and on to a happier, healthier financial life.
Don’t Let Your Mortgage Payments Weigh You Down
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.