Eliminate Second Mortgage (junior mortgages) Through Lien Stripping
To Eliminate Second Mortgages (or other junior mortgages) certain conditions must be met. As housing values in and around Massachusetts have plummeted, homeowners have been left with mortgages that far exceed the value of their property. With the housing market in distress and a down economy, many homeowners are struggling to make payments on a second or third mortgage.
Homeowners have the ability to Eliminate Second Mortgages (junior mortgages) through lien stripping. This is a court process that is only available if the debtor’s first mortgage is higher than the value of their home. For example, if you own a home worth $300,000.00 (based on an appraisal value) and have a first mortgage for $310,000.00 and a second mortgage for $70,000.00 – you would be able to eliminate your second mortgage in a chapter 13 bankruptcy. For a second or third mortgage to be removed, a debtor must successfully complete the chapter 13 process. Please be aware, it is not possible to remove a second or third mortgage in a chapter 7 bankruptcy.
So while many people are starting to surrender their real estate back to the bank, think twice before you make your decision and speak with a competent bankruptcy attorney. You just might be able to remove the second mortgage and keep the house with a more affordable mortgage payment.
Let the Law Office of Matthew C. Swanson Help You Today
If you have a second or third mortgage on your property, please call for a free consultation to discuss the possibility of stripping the second or third from your real property. Contact Attorney Swanson today.
The Law Office of Matthew C. Swanson services all of Plymouth County, Bristol County, Norfolk County, and Barnstable County.