How To Remove A Second Mortgage With Chapter 13
Chapter 13 reorganization bankruptcy can be a viable option for many homeowners who are lagging far behind in mortgage payments. In the short term, when you file for Chapter 13, the automatic stay (stop) against foreclosure action is automatically imposed. The automatic stay covers all collections actions, including wage garnishments, car or truck repossession and creditor harassment. Chapter 13 gives you the opportunity to repay your past due mortgage balance over a comfortable three- to five-year time frame.
Strip Off A Second Mortgage To Get Your House Payments Back Under Control
Many people borrowed heavily against the increased equity in their homes, only to see their equity disappear when property values dropped during the Great Recession. Unfortunately, banks still expect the homeowner to repay the new, higher mortgage amount.
Chapter 13 allows homeowners to strip off the second or third mortgage loan, if they can show that their outstanding first mortgage amount is more than their house is currently worth. This is called “stripping off” a mortgage. Stripping off your second or subsequent mortgage can provide valuable savings that can mean the difference between losing your house to foreclosure or keeping your family in your home.
We Can Help You Navigate This process
Let us show you how we can take the fear and uncertainty out of your bankruptcy filing. Lawyer Linda Bal’s personal dedication, proven skills, decades of experience and reputation for results can help you, your family or business — starting today.
From offices in Itasca, Rosemont, Algonquin and Naperville, the attorneys of Linda Bal & Associates provide legal advice and representation for clients in communities throughout the greater Chicagoland area. Contact our firm at 630-912-5970 or 800-599-2152 toll free to arrange a free initial consultation with an experienced mortgage lawyer at an office near you.