San Mateo County’s Trusted Chapter 13 Bankruptcy Attorney
In California’s real estate market, it is common for your home to be worth less than is owed. If the bank forecloses on your home to satisfy your first mortgage, the proceeds of selling your home will generally not be sufficient to cover your second mortgage, leaving you personally liable for the amount of the loan that had been secured by your home.
If you have taken a second mortgage on your home and still owe money on the first mortgage, you may be able to strip the lien of the second mortgage. Lien stripping is available under California law in conjunction with filing for individual Chapter 13 bankruptcy that will eliminate personal liability for your second mortgage by converting it to unsecured debt that is eliminated as part of your debt restructuring plan.
Lien stripping is not an option if you have equity in your home and the “second mortgage” is your primary loan.
If you have a second or third mortgage and your house is under water, it is important to work with a knowledgeable bankruptcy lawyer who has more than 25 years of experience with stripping second and third mortgages during Chapter 13 bankruptcy.
Dedicated Mortgage Debt Law Firm
Call a South San Francisco Chapter 13 bankruptcy lawyer or send us an e-mail to schedule a free initial consultation today.
The Law Office of John Iaccarino a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.