Use Chapter 13 to Eliminate Your Second Mortgage or Home Equity Line of Credit
Not only does Chapter 13 bankruptcy prevent home foreclosure and allow people to keep their house, it can also open the opportunity to strip second mortgages or home equity line of credit (HELOC) in many situations. In other words, if you have two or even three mortgages, you may be able to get rid of those mortgages completely if you file Chapter 13.
When you come to the P.R. Smith Law Group, P.A. in Florida, our lawyers will quickly determine whether you are eligible for this unique process. With more than 50 years of combined legal experience on our side, you can be confident in our ability to find all opportunities to improve your financial situation.
How Does Mortgage Stripping Work?
In order to be eligible for mortgage stripping, you must first file Chapter 13 bankruptcy. Then you must have a home that has depreciated in value to the extent that it is now worth less than the first mortgage. Only then can you strip off the second mortgage in order to get the value of the property more closely in line with the debt.
Here is an example: You have a $300,000 mortgage on a home that is now worth only $200,000. If you got a second $100,000 mortgage while that home was still worth its original value, you may be able to have that second mortgage stripped.
Needless to say, stripping a second mortgage provides a huge relief. It goes a long way toward helping get financial problems under control. After all, that is our goal.
Contact Us for a Free Initial Consultation
Not only is your initial consultation with a Tampa Chapter 13 bankruptcy attorney free, our fees are extremely reasonable and easy payment plans are available.
Call us at 888-682-5251 or send us an e-mail to get started today.
