Removing a Second Mortgage
Removing a Second Mortgage in Bankruptcy
Are you upside down on your mortgage? Does your mortgage exceed the value of your house? If you have more than one mortgage on your home, filing for Chapter 13 Bankruptcy can allow you to strip – or remove – your second mortgage.
Filing for Chapter 13 Bankruptcy can also help you strip other debt such as a home equity loan or line of credit.
Lien stripping is another term for removing a second (or third) mortgage. If the market value of your home is less than what you owe on your first mortgage, you can remove any remaining mortgages when you file for Chapter 13 Bankruptcy.
When you strip a mortgage, it is converted into unsecured debt – similar to a credit card, medical bill or personal loan. After going through the Chapter 13 Bankruptcy process, you will only owe what is left on your first – or senior – mortgage. All additional mortgages will be discharged like credit card debt.
How Does Lien Stripping Help?
Lien stripping will help you wipe away some of your debt. It allows you to remove a second mortgage, home equity loan or line of credit. After you have gone through Chapter 13 bankruptcy, this will make it easier for you to sell your home for a profit.
If you feel like you are swimming in debt from your home mortgage, we can help guide you through the process of Chapter 13 Bankruptcy and Lien Stripping.
Contact us online or call today at (734) 397-4540 to discuss your situation with one of our skilled and experienced bankruptcy lawyers.