Bankruptcy & Second Mortgages
Before the housing crisis, many people chose to take out a second mortgage on their property with the expectation that the value of their homes would rise. Today, many of those same people are struggling to keep up with their mortgage payments.
If you find yourself struggling to make payments on a second mortgage, you should talk to an attorney about the benefits of lien stripping through Chapter 13 bankruptcy. You may be able to remove the second mortgage if it is worth less than your first mortgage. Contact an attorney from the Bankruptcy Center of John D. Raymond to learn more.
What Is Lien Stripping?
Lien stripping is the process of removing a second or third mortgage through the process of Chapter 13 bankruptcy. In order to qualify for lien stripping, you must currently have a second or third mortgage, and the current value of your house needs to be less than what is owed on the first mortgage. Through the process of lien stripping, additional mortgages can be turned into unsecured debt. When a repayment plan is established through Chapter 13 bankruptcy, that debt can be eliminated after the three- to five-year repayment plan has ended.
If you have additional mortgages are interested in learning more about the benefits of lien stripping, contact a lawyer from our firm. We have helped more than 20,000 individuals with the most complex types of bankruptcy and debt relief matters, and we are confident in our ability to help you.
Contact an Attorney to File for Bankruptcy with a Second Mortgage
Serving clients throughout the entire Bay Area including:
- Daly City
- South San Francisco
- San Bruno
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.