Stripping Second Mortgages

Compassionate Bankruptcy Counsel In Lisle For More Than 50 Years

When your house is worth less than the mortgage you have on it, you have an underwater — or upside down — mortgage. At first glance that might not seem like a big deal: As long as you keep paying your mortgage on time, it shouldn't affect you. But if you have two underwater mortgages, you may have cause for concern. It can become an even larger problem if you file for bankruptcy.

The real estate attorneys at Lynch Law Offices, P.C., in Lisle, can help you sort out your mortgage problems in a variety of ways. For example, there is a provision in Chapter 13 bankruptcy suits for stripping off your second mortgage. Our qualified DuPage County lawyers can remove the second mortgage and help you plan your repayment schedule.

The Fundamentals Of Removing Second Mortgages

Let's say your home is worth $200,000. You owe $210,000 on your first mortgage and $50,000 on a second mortgage. When you file for bankruptcy, you can request the removal of that second mortgage from your debts on the basis that your home is worth less than what you owe on your first mortgage. Your second mortgage is technically unsecured in that situation, and unsecured debts are wiped clean in successful Chapter 13 filings.

There are some problems associated with stripping off second mortgages. Unless the handling of the second mortgage is specifically included in your bankruptcy plan, you have to file a lawsuit against the mortgage holder in bankruptcy court in order to remove the debt. The Aurora real estate attorneys at Lynch Law Offices, P.C., can help you in getting it included or in filing the lawsuit. As skilled bankruptcy lawyers, we are very familiar with the regulations surrounding the removal of second mortgages.

How Our Real Estate Attorneys Can Help With Mortgage Debts

The attorneys at Lynch Law Offices, P.C., are dedicated to helping clients eliminate their debts responsibly and legally by:

  • Filing lawsuits. If a strip-off isn't part of your original plan, we can draft the lawsuit against your creditor to remove the mortgage. We know how to prepare the lawsuit to avoid potentially costly errors.
  • Contacting your lender. Not every lender is amenable to a strip-off. We work with your lenders to rationalize why accepting the strip-off is a fiscally sound idea.
  • Protecting credit. Some bankruptcy claimants ignore their credit reports, assuming that their credit will be destroyed automatically. We can determine whether or not a strip-off will significantly harm your credit. We also help you structure your repayment plan to raise your credit score as you pay off your debts.

Find Out If Removing Your Second Mortgage Is An Option For You

To learn how you may be able to remove your second mortgage, contact us toll free at 800-491-7493. We represent individuals in Naperville, Wheaton and elsewhere in DuPage County.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.