Removing a Second Mortgage or Home Equity Loan in Michigan
Michigan Bankruptcy Attorneys Providing Debt Relief
Losing their home is often the biggest concern for homeowners facing unmanageable debt. Falling behind on the initial mortgage payments is a harsh reality without second mortgages and related home equity loans making foreclosure imminent. Depending on your home's value, you may be able to remove your additional mortgages or home equity loans by filing for debt relief under Chapter 13 bankruptcy.
Acclaim Legal Services is an experienced debt relief law firm committed to helping you find the best option to protect your home and your future. Contact our law offices in Southfield, Flint, Dearborn or Warren, Michigan, to learn more about removing a second mortgage or home equity line through Chapter 13 debt reorganization.
Who Can Remove and Reduce Multiple Mortgage Loans or Home Equity Lines?
Do you owe more than your home is worth? Do you have multiple mortgages and/or equity loans? Chapter 13 bankruptcy offers a three to five year debt reorganization plan with the ability to remove second mortgages and home equity loans from your home in a process known as "lien stripping." Mortgage modification through a lien strip in Chapter 13 bankruptcy can readjust a home's worth (by reducing the debt obligation to just the first mortgage) to current market values and more affordable conditions for homeowners making less income.
If your first home loan is worth more than the current market value of your home, your additional mortgages and home equity loans are considered "wholly unsecured." For example, if your home is worth $200,000 and your first mortgage is at $250,000, a second mortgage or equity loan on your home is unsecured and may be treated exactly like your other unsecured creditors (credit card companies, etc.) during Chapter 13 bankruptcy.
In most cases, a portion of your unsecured debt will be eliminated during bankruptcy proceedings. In every case all unsecured debts are paid back at zero percent interest. The bankruptcy court will stop/defer all payments to unsecured creditors until you are caught up on your payments to secured creditors (primary mortgage, vehicle payments, etc.). This means that your mortgage payment will be more affordable..
The Benefits of Chapter 13 Bankruptcy
Why choose Chapter 13 bankruptcy ? It can help you:
- Immediately stop a foreclosure action by a mortgage lender
- Convert additional mortgages and liens to unsecured debt, defer payment or eliminate liability
- Improve the secured loan status of the original mortgage
- Propose a loan modification through the Chapter 13 to reduce and/or fix an interest rate to yield a lower monthly payment
- Build your credit score
- Reduce or eliminate other debts such as credit cards and medical bills to focus available dollars on paying the primary mortgage
Protect Your Home. Call Our Chapter 13 Bankruptcy Attorneys at 866-438-5217.
Contact the Michigan bankruptcy lawyers at Acclaim Legal Services to discuss your home foreclosure and other personal bankruptcy options for debt relieve. We offer free initial consultations.