Can I Eliminate My Second Mortgage in Bankruptcy?
The current financial crisis, brought on by the collapse of the housing market has more and more people looking for solutions to their “under water” property.
This is one region that Mitchell Reed Sussman & Associates would like to point out to a lot of customers that they do have great options available to them. Although a lot of people think the best option that they have is to surrender the realty or the home which they purchased a long time ago, the truth is that there are legitimate ways in which the borrower can come out on top.
To achieve this the borrower or the applicant of the loan needs to get in touch with a good bankruptcy attorney such as Mitchell Reed Sussman & Associates, who will be able to guide them on the rights and protection that they have according to law.
Some of the things that can be done under such circumstances are as follows, the borrower can get a modification of the loan amount, and the payment structure of the loan can be made more manageable. Considering that such cases are common after the collapse of the real estate market the values of most homes have dipped a lot.
There are a lot of lenders who are not looking to reclaim under water real estate, in such cases great solutions can be worked out between the lender and the borrower. Some of the best options available are those that the bank offers and these are the possibility of cashing out and the possibility of getting great discounts on underwater properties.
By definition, lein stripping, according to chapter 13, means that a creditor who has a second or third mortgage on their property, whose property value is less than the amount that they are paying for it can have that mortgage stripped.
According to 11 U.S.C. 1322 (b) (2) “a completely unsecured lien does not fall within the specifications of this section”. Its due to reasons such as these that it is advised that those that are interested in walking away from bad investments and cutting their losses, get in touch with a good attorney such as Mitchell Reed Sussman & Associates for the best options that do exist for such cases specifically.