Orlando Foreclosure Attorney | Stripping a Second Mortgage Law Firm | Helping you avoid foreclosure
Orlando Stripping a Second Mortgage Overview:
Stripping a Second Mortgage Details:
When the housing market in Florida was robust, lenders encouraged people to take out second mortgages or borrow against the equity in their homes to meet other financial obligations. Now that many people have lost their jobs and the real estate market is not as healthy, the higher payments associated with second mortgages are causing many homeowners to default. When the debt burden becomes unmanageable, people use bankruptcy as a way to get their finances back under control, protect their homes and get a fresh start. We can help you to remove that second mortgage so that your life is less stressful
How Chapter 13 Bankruptcy can help
If the value of your home is less than the balance of your mortgage (known as being "underwater"), and you have a second mortgage with no equity, it is possible to remove the second mortgage from your home using Chapter 13 Bankruptcy. This process is known as "lien stripping." When your first mortgage is underwater, any additional mortgages are considered unsecured debt. That means that your second mortgage will be treated the same as your other unsecured debt in Chapter 13. That means:
Your second mortgage debt becomes part of your court-approved payment plan
Your payments under the plan are applied to secured debts first, including your first mortgage. The interest rate on your second mortgage is reduced to zero percent
At the end of the three to five year payment period, most of your unsecured debt, including the second mortgage, gets eliminated.
Stripping a second mortgage can only be done in certain cases. It often requires an appraisal of the house and an extra hearing.
Call 407-647-8833 to learn more about stripping a second mortgage and see if you qualify, or contact us at our Orlando office to make an appointment for a free consultation.
BAKER LAW, PL serves the Central Florida and seven-county Orlando area, including the cities of Sanford, Lakeland, Lady Lake, Kissimmee, Maitland, Lake Mary, Oviedo, Winter Garden, Winter Park, Windermere, Lake Nona, Apopka, Mount Dora, Winter Springs, Longwood, North Orlando, South Orlando, East Orlando and West Orlando, Melbourne, Titusville, Cape Canaveral, Daytona Beach and New Smyrna Beach, and the counties of Orange, Seminole, Lake, Polk, Brevard, Volusia and Osceola.