Stripping a Second Mortgage
Obtain a St. Petersburg Bankruptcy Lawyer For Help!
In Florida and across the nation, many homeowners have seen the value of
their properties plummet below what is owed on their mortgages. This is
especially true in the case of homes with second mortgages where the second
lien exceeds the current value of the home. If you are in this position
in Tampa, St. Petersburg, or Clearwater, you may be in default on home
loan payments or facing a pending foreclosure. If you are facing overwhelming
debt, part of which includes a second mortgage which you cannot now afford,
you may be able to get the
debt relief you need through a Chapter 13 bankruptcy filing which could result in
the negation of your second mortgage.
To find out if your situation qualifies you for a second mortgage stripping
by a bankruptcy court, you should consult with a
St. Petersburg bankruptcy attorney at LeavenLaw at your earliest opportunity. Our firm is devoted exclusively
to the practice of debt relief, bankruptcy, and foreclosure defense, which
makes us highly qualified to assist you.
Chapter 13 Bankruptcy and Second Mortgage Stripping
Many bankruptcy courts follow a rule set forth in the U.S. Bankruptcy Code
which turns a lien which exceeds the value of the collateral to which
it is attached into an unsecured debt. According to Section 506 of the
Bankruptcy Code, any lien can only be deemed a secured claim if the asset
on which it is based has a value sufficient to satisfy that lien. If your
property has been devalued to a level less than what is owed on your second
mortgage, through a
Chapter 13 personal bankruptcy filing you may be able to legally have that lien stripped as a debt. In
this scenario, the second mortgage lien holder becomes an unsecured creditor
who can only seek payment of the debt through the bankruptcy court.
Chapter 13 is a useful tool for those in overwhelming debt who are facing
foreclosure. Stripping a second mortgage through a Chapter 13 filing may
make the difference between losing your home and saving it. By discussing
your debt situation with a St. Petersburg bankruptcy lawyer at the firm,
you can learn all of the available options you may have, including second
mortgage stripping, which could put you back into financial control.
Call our firm today for assistance!