Bankruptcy Law Firm Helping To Eliminate Second Mortgages
A second mortgage can be a useful tool if you specific set of circumstances calls for it. Yet, if you find yourself in serious financial trouble, it can be a blessing to be able to eliminate it. We have been able to help many clients get rid of their detrimental second mortgage by filing a Chapter 13. This useful tool will allow you to utilize something called lien stripping. While a few states allow for this to happen in Chapter 7, Massachusetts is not one of them. This tool allows you to get rid of your junior liens by allowing a bankruptcy court to take your second mortgage and convert it to an unsecured form of debt, similar to a credit card, and it orders the lender to remove the lien in question. While it’s not a surefire way to get yourself out of the red financially, it can help you begin to rebuild your financial well-being.
Special Circumstances To Keep In Mind
There are special circumstances that allow this to happen. You can only strip your second mortgage, commonly called referred to as a “junior lien” due to its progression from the first one, if the amount of the senior liens on the property exceeds the home’s market value. As for your third mortgage, then you can strip both your second and third mortgages if your first mortgage is greater than the value of your house. However, if your house is worth more than your first mortgage alone, but not more than the combined balance of your first and second mortgages, then you can only strip your third mortgage.
Converting The Mortgage For A Fresh Start
With our help, we can see to it that your mortgage is safely converted to an unsecured debt so as to remove the lien from your property and avoid the risk of repossession for the time being. By doing so, you will have more financial security and a higher chance of being able to find a way to pay off your debts in a timely manner. Just like credit card debt in Chapter 13, you don’t have to make payments on this debt outside of your bankruptcy. Instead, you will usually pay a small portion of this unsecured debt through your Chapter 13 plan that we will work to establish. If you complete the plan, anything left on the mortgage is wiped clean.
The most important thing is to get ahead of this before it’s too late. By contacting the professional bankruptcy lawyers at Benner & Weinkauf, we will use our years of experience to put the right bankruptcy plan into place and get you out from under the umbrella of your mortgage. Together, we will find a way for you to afford to address your debts again. Nobody should have to sit back and lose their possessions because they can’t pay off a debt amount, no matter how high it is. That’s why we fight tirelessly for our clients to get them the respect and second chance that they deserve to ge their finances back on track. No more harassing phone calls, no more mailboxes full of letters, whatever your financial situation is, we will work to find a solution that works best for you. To find out more about how we can help you eliminate your second mortgage, call us today. We’ll be standing by to help.