Discharge Your Second Mortgage Debt
Prior to the collapse of the American housing bubble and the country's Great Recession, loans and mortgages were easily obtained and loosely underwritten. Although the negative effects these subprime loans had on creditors and lenders were soon made apparent during one of the harshest economic climates in U.S. history, the fact remains that millions of Americans were left mired in underwater mortgages and overwhelmed by insurmountable debt. As a result, many who took out second mortgages on their homes, or home equity lines of credit, found themselves in incredibly difficult financial predicaments.
Having spent years guiding numerous individuals and families through the bankruptcy and foreclosure defense process, our Orange County bankruptcy attorneys have become intimately familiar with U.S. bankruptcy law. This has allowed us to identify a number of little known provisions in the bankruptcy code that we use to assist eligible homeowners who wish to discharge a second mortgage.
How it Works
Homeowners who have a second mortgage on their home can file Chapter 13 bankruptcy as a way to restructure their debts into more manageable payment plans that last three or five years. At the end of the payment plan, bankruptcy courts may grant homeowners a discharge of the remaining debt on their second mortgage. This is done in much the same way that unsecured debts are discharged. When done successfully, this will mean that homeowners will only be required to pay original debt for pennies on the dollar. In addition, once these cumbersome second mortgages have been eliminated, homeowners will have more financial flexibility. Lenders are also more willing to negotiate loan modifications once debts have been eliminated, and when these benefits are compounded, homeowners can more effectively avoid the foreclosure of their home.
Discuss Your Options with an Orange County Bankruptcy Lawyer
The amount of debt relief "out there" is enormous and available to those who are willing to take the time to learn about their options. At 1st California Law, Inc., our Orange County bankruptcy lawyers are committed to helping individuals, families and homeowners learn more about their debt relief options and how we can be of assistance.
If you would like to learn more about your eligibility to discharge a second mortgage, or if you wish to discuss your financial situation and find out how our firm can help, contact 1st California Law, Inc. today. A Santa Ana bankruptcy attorney from our firm would love to assist you today!