Eliminating Second Mortgage Liens Through Bankruptcy
Lenders will put a lien on your house if you use it as collateral on a loan. If you become unable to make the payments on the loan, the lender can try to force the sale of your house in order to recover the money you owe. In some cases, when the real estate market is bad, your house may not be worth the amount you owe on it. Believe it or not, this could be a good thing for you.
Through a process called lien stripping, you may be able to have second, third and subsequent mortgages removed from your house when you file for Chapter 13 bankruptcy. Lien stripping can be quite complex and an experienced Orlando area bankruptcy lawyer can help to ensure that your interests are protected. At the Price Law Firm, we represent clients throughout central Florida in all areas of consumer bankruptcy.
How Lien Stripping Can Work for You
Perhaps the best way to explain lien stripping is by way of an example.
Let’s assume that you owe $300,000 on your first mortgage. Over the years you have taken out a second mortgage of $75,000 and a third of $25,000. If the value of your home falls below $300,000 there is no longer enough value in the property to secure the $75,000 and $25,000 loans. As part of a Chapter 13 bankruptcy filing, the second and third mortgages can be reclassified as unsecured debt and the liens stripped from your house.
Our attorneys have extensive experience in these types of cases. We diligently pursue every available option in an effort to put you in the best financial position possible. We pride ourselves on the personal service we provide to every client and our ability to build customized debt relief solutions designed specifically to meet your needs.
To learn more about your bankruptcy options, contact the Price Law Firm. From our offices in Altamonte Springs in the Orlando-Kissimmee metro area, we represent clients throughout central Florida. To schedule a free consultation with an attorney, call 407-834-0090.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.