How to Get Rid of a Second Mortgage
For many people, debt problems have been made even more tedious because of plunging real estate values. They have mortgages that are more than what their homes are actually worth. On top of that, they also have second mortgages. Some even have third mortgages.
One of the benefits of filing Chapter 13 bankruptcy is that it opens up opportunities to attack debt that may not be available in a Chapter 7 bankruptcy. One of those opportunities is stripping a second mortgage. At Rothschild & Ausbrooks, PLLC, our lawyers understand how to strip a second mortgage. We have more than three decades of experience helping people just like you in Goodlettsville and throughout Tennessee, so you can be confident that we will make certain that you do not miss any opportunities to improve your financial situation.
When Stripping a Second Mortgage Is an Option
Essentially, if your mortgage is upside-down, you may have the option to strip a second mortgage in a Chapter 13 bankruptcy. For example, perhaps you bought a home that was worth $300,000 with the help of a $250,000 mortgage. Perhaps you later got a second mortgage for $50,000. Now you find that your house is worth less than $200,000, and you still have that second mortgage hanging over your head. In this situation, you may be able to strip your second mortgage.
This option depends on the value of your home, not on the value of the mortgage. You may be able to strip a second mortgage of $150,000 as easily as you would one of $50,000, depending on your situation. Our attorneys can help.
Contact Us for a Free Bankruptcy Consultation
Please contact Rothschild & Ausbrooks, PLLC, today to get answers about how to get rid of a second mortgage.