Under the right circumstances bankruptcy can strip a second (or third) mortgage off your home’s title, and radically reduce how much you pay. Summary Do you have a second or third mortgage on your home? Imagine if you could stop paying that monthly mortgage payment. Imagine over the course of the next 3 to 5 years paying only as … Read More
Do you have a 2nd or 3rd mortgage, owe property taxes, or have an income tax lien on your home? Chapter 13 may be much better than Chapter 7. The last two blog posts were about situations in which a homeowner is current on the mortgage but has other debts on the home. We showed how Chapter 7 “straight … Read More
There are certain scenarios when your home mortgage is current and you’re dealing with other home-related debts that Chapter 7 works well. You’re current on your home mortgage payment, although you’ve been struggling mightily to keep it that way. You’re thinking very seriously about getting some financial help through bankruptcy. But you absolutely want to keep the home that … Read More
You can file a Chapter 13 case if you are an “individual,” have regular income,” and don’t owe too much.
“Stripping” off a second mortgage has major immediate and long-term benefits.
Have the flexibility to sell your home when you want, giving time for it to add equity, while keeping creditors away from that equity.
If you are leaving your mortgage(s) behind, what are the advantages and disadvantages of doing so within the two main bankruptcy options?
Could you afford your home if you didn’t have to pay your other creditors or didnât have to pay second mortgage payments?
Bankruptcy can buy you a few more months or even several years, so you can sell your home when you’re financially and personally ready.
You’ll likely be much more comfortable with the Chapter 13 “adjustment of debts” procedure once you read this story about how it plays out.