The economic downturn has affected most Americans — many people have lost their home to foreclosure, because they simply cannot afford to continue making payments on property that has lost its value. There is a way to keep your home, however.
Filing for Chapter 13 bankruptcy provides an option to prevent foreclosure. It allows you to pay off unpaid amounts of your original mortgage, and in some cases, reduce the total amount of debt owed on your home through a process called lien stripping.
To schedule a free consultation to discuss lien stripping, which can also be thought of as a "mortgage cram down," with an experienced Southampton attorney, call the Law Offices of Michael S. Schwartz at (215) 375-7346, or contact us online.
We have office locations in Southampton, Havertown and Perkasie, Pennsylvania.
Bucks County Attorney - Helping to Remove a Second Mortgage
Real estate values have plummeted over the last decade, with the result that in many cases property market value is well below the amount of the original mortgage obtained for its purchase.
As part of filing for Chapter 13 bankruptcy, you may be eligible to strip the lien of a second mortgage on your home if your property has been appraised as equal to or lesser than the original mortgage. For example, if the appraised value of your home is $100,000, the first mortgage has $120,000 remaining and the second mortgage has $25,000, the second mortgage is stripped and converted to unsecured debt.
Once you have completed a reasonable repayment plan over the course of three to five years, the length of which depends on your individual circumstances, the second mortgage will be completely discharged.
Bucks County Mortgage Lien Stripping
To remove a second mortgage with the help of the Havertown lawyer at the Law Offices of Michael S. Schwartz, call 866-584-7966 toll free or contact us online. We serve clients in Southampton, Perkasie and Havertown.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
