Law Offices of Carol D. Ellis, P.A.
Call for a Free Consultation 561.513.5809 En EspaÑol
  • Home
  • About Our Firm
  • Meet Carol D. Ellis
  • Bankruptcy
  • Family Law
  • Estate Planning
  • FAQ
  • Contact Us
  • Call Today
  • Email Us
  • Our Map
  • Menu
Blog 2011 June How to Strip Your Second Mortgage Through the Chapter 13 Process
Previous Post  |  Next Post

How to Strip Your Second Mortgage Through the Chapter 13 Process

Posted By Fort Lauderdale Bankruptcy Attorney || 3-Jun-2011

Under Chapter 13, a person's home mortgage is usually left unaffected as long as they continue to make their mortgage payments. Where your second mortgage is concerned, however, there is an exception worth reviewing.

If your house is worth less than your first mortgage, other mortgages on the home are no longer secured by the property's value. Under Chapter 13 bankruptcy this actually opens a door which will allow you to "strip" the mortgage as an unsecured loan. For example, if your home is currently worth $500,000 but you owe $550,000 on the mortgage and you have a second mortgage for $50,000, that second mortgage is no longer secured by the value of your home.  Under chapter 13 it is legal to remove an unsecured mortgage.

Categories: Bankruptcy, Chapter 13, Home Value, Second Mortgage, Unsecured Mortgage

Share Post

Bankruptcy

How Can We Help You?

  • Chapter 7
  • Chapter 13
  • Bankruptcy Process
  • Alternatives to Bankruptcy
  • Bankruptcy Myths
  • Creditor Harassment
  • Foreclosure
  • Mortgage Modification Mediation Program
  • Repossession
  • Wage Garnishment
  • Will I Lose My Car & Home?
  • Working With the Hispanic Community
  • Bancarrota
  • Capítulo 7
  • Capítulo 13
  • Ejecucion Hipotecaria

Contact Our Law Offices Today

Send My Information
  • Home
  • Site Map
  • Privacy Policy
  • Contact Us
Law Offices of Carol D. Ellis, P.A.
Law Offices of Carol D. Ellis, P.A. - Palm Beach Lawyer
500 Australian Ave. South, Suite 600, West Palm Beach, FL 33401 View Map
Call Today (561) 513-5809
Website: http://www.carolellislaw.com/
© 2023 All Rights Reserved.
Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.