Lien Stripping for Second Mortgages
With the recent economic crisis, homeowners are looking for relief. When housing prices plummet and homeowners cannot make their mortgage payments, bankruptcy can seem like the only way out. If you are considering giving up your home, you may want to consider other options. Attorney Richard Croak has extensive experience with lien stripping of second mortgages to help clients protect their assets and financial security.
Protect your security and your rights. Contact attorney Richard Croak today by calling 518-213-3359 or contact the office by e-mail.
How Can I Eliminate Debt on a Second Mortgage?
What if it were possible to eliminate your debt on a second mortgage and pay only on your first? For homeowners who have a second mortgage, your financial difficulties may seem complicated and overwhelming. While bankruptcy law allows judges to modify loans on certain debts like auto loans, credit card debts and student loans, it also allows debtors to reduce the balance of a second loan equal to the value of the property.
What is Lien Stripping?
"Stripping a lien" is when the judge removes the second mortgage during a bankruptcy proceeding. You can strip a lien if the home is not your principal residence or if the loan is unsecured by collateral in the bankruptcy filing.
Liens you can strip include:
- Car liens
- Second mortgages
- Judgments
- School loans
Chapter 13 Bankruptcy and Lien Stripping
If your home is worth $300,000 and you have a first mortgage in the amount of $300,000 and a second mortgage in the amount of $100,000, only your first mortgage is secured by the value of your home. The second mortgage is an unsecured lien on your home. In a Chapter 13 bankruptcy, you have the right to strip the lien of any unsecured lender, in this case, your second mortgage.
Does Lien Stripping Give Me the Right to Keep My Home?
After filing for Chapter 13 bankruptcy, you will most likely be able to keep your home and the second lender will not be able to collect on the mortgage. The bankruptcy proceeding will discharge your unsecured debts, namely any unsecured mortgages. By filing a Chapter 13 bankruptcy, you can keep your home and remove a second mortgage or a lien.
For more information about bankruptcy options and your rights, please contact lawyer Richard Croak at his Albany, New York, office for an initial consultation by calling 518-213-3359.
"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."
