For about 10 years now, there have been areas in California where the real estate market remains in a state serious recession. Many homeowners have learned that their residential real estate is worth significantly less than what they’ve borrowed against their homes, especially when second or even third mortgages are involved. If you do have a second or third mortgage on your home, we might be able to make those vanish. The law allows some people to do that, and they can still keep their home.
If circumstances are forcing you into a position where you’re thinking about a bankruptcy, and you own a home, it’s important that you speak with us. We’ll want you to get a grasp on this complicated area of bankruptcy law. Our knowledgeable and experienced Los Angeles Bankruptcy Lawyers will discuss keeping your home while eliminating or restructuring your debts.
An example of the issue
The home that you live in has an existing mortgage of $500,000, and you have a second mortgage of $100,000. What comes to issue in today’s real estate market in many California areas is that your home significantly depreciated, and now it’s worth only $470,000. Suddenly you don’t even have a single penny of equity in it.
How debt relief works
In the the circumstances described above, you can file a Chapter 13 bankruptcy petition along with an appropriate motion, and you may keep your house and eliminate that second mortgage. When a court allows that, the possibility of that second mortgage lender foreclosing on you is reduced down to zero. That’s because there’s no second mortgage anymore. A certified copy of the bankruptcy court’s order proving that the second mortgage is now void can even be recorded as a public record. The beauty of it all is that if you want to refinance your first mortgage at a lower rate in the future, all you need to do is submit your application.
We’re in the fortunate position to have been able to help countless people across California obtain relief from the pressure of crushing debt through Chapter 7 and Chapter 13 debt relief. We can petition right away for appropriate relief to help you save your home too. We even offer flexible payment plans.
We have extensive experience in successfully eliminating second mortgages. Contact us for a free consultation about your current situation, and you’ll be able to learn more about getting rid of that second mortgage and saving your home.