Can Bankruptcy Eliminate Second Mortgage on My Home?
A debtor filing a Chapter 13 can find that Bankruptcy eliminate second mortgage on his or her Homestead. In order to eliminate the second mortgage, the fair market value of the Homestead must be less than the balance owed on the first mortgage. We can establish the fair market value through either an appraisal from a certified property appraiser or a statement from the County property tax collector as to the Homestead’s value.
This process is called lien stripping because the debtor in Bankruptcy eliminating the second mortgage from the Homestead is compared to someone stripping paint from a house. This process can only be accomplished through a Chapter 13 Bankruptcy, and only can be performed on a Homestead.
Our bankruptcy law firm can help you understand if bankruptcy can help eliminate a second mortgage and other bankruptcy questions you may have.
If you need legal advice regarding can bankruptcy eliminate a second mortgage, contact us online or call us at 1-800-407-DEBT(3328).
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