Friday, July 25, 2014

Chapter 13 bankruptcy can get rid of your second mortgage. File for No money down*

Are you faced with foreclosure?
Do you owe more on your first mortgage than your home is even worth?
Do you want to get rid of your second mortgage?

I can help!
Chapter 13 bankruptcy can strip off a second mortgage (and even a third) if you owe more money on the first mortgage than your home is even worth.   With the huge real estate value collapse we've seen over the last 5 years, homeowners are frequently upside down on their homes.  They are forced to attempt a short sale, which is extremely difficult.   They have to negotiate with their second mortgage companies to agree to take less than what is owed, then are stuck owing a deficiency balance, or if the bank writes it off, they are hit with a huge tax bill, since they are liable to pay taxes on the amount reduced, just as if that was income.

So, debtors often turn to chapter 13 bankruptcy to help.
What I can do with a chapter 13 plan is to catch them up on their first mortgage if they are behind.
I can also force the second mortgage to be paid the same rate as credit cards, medical bills, utilities and other unsecured debts.   At the end of the plan, the second mortgage is required to release their lien on the home.

Hopefully, by the end of the 3 to 5 year chapter 13 bankruptcy repayment plan, their home would increase in value and the debtor would be in a much better position, especially if they look to sell.

This cram-down or lien stripping is done either thru the chapter 13 plan, by motion in the chapter 13, or by adversary proceeding, depending on the judge in your case.

For example, lets, say you bought your home for $300,000.   You took out a first mortgage of $200,000  and a second mortgage of $100,000.  Then, say today the home is just worth $180,000 because of the real estate/mortgage crisis.

I can set up a case, where you would pay $166.67 month toward that second mortgage (through your chapter 13 plan payment). You would not need to make the regular monthly payment on that second mortgage.   Using the cram-down and lien strip provisions of the chapter 13 bankruptcy code, you would pay this for 5 years.   At the end of that time, the second mortgage would be required to release their lien.

Call me today for a free bankruptcy consultation and I can show you your savings!
Let me lead you to financial freedom and a fresh start.

If you mention this post, I am offering to file Chapter 13 cases for no attorneys fees up front, you'll just pay court fees of $310 and $35 each for credit counseling and debtor education courses.

*This is limited to first time chapter 13 filers, must be employed full time, and must go onto payroll control for your chapter 13 payment plan.

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