Prior to the country's Great Recession and collapse of the American housing bubble, 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, millions of Americans were still 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, we 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 discharge a second mortgage. Contact us today to enlist our help!
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. With both of these benefits, 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 help.
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!
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1st California Law Inc
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"Kevin Kunde is an attorney licensed by the State Bar of California. Mr. Kunde graduated from Chapman University School of Law where he was a Senior Editor for the Nexus Law Journal, a Dean's Fellow/teaching assistant for Contracts course and served as a Judicial Extern for the Honorable John Rayburn for the U.S. District Court for the Central District of California"Read Full Bio