Stripping Second & Third Mortgages
Getting Rid Of A Second Mortgage In Chapter 13 Bankruptcy
In Ohio, many homeowners are feeling the pinch. They took out second and third mortgages at a time when the real estate market and the economy were strong. They now find it difficult or impossible to cover their primary mortgage payment, let alone any secondary payments.
Fortunately, help for these people is available via Chapter 13 bankruptcy. A Chapter 13 can strip a second or third mortgage and allow the homeowner to pay mere pennies for every dollar owed. Not only does the debt disappear after the discharge is ordered, but the resulting higher cash flow also makes it much easier for these homeowners to cover their first mortgage, as well as their other debt payments and living expenses.
At the law firm of Minnillo Law Group Co., LPA, we have helped many homeowners strip secondary mortgages and get debt relief through Chapter 13 bankruptcy filings. If you have unmanageable debts and don’t know where to turn, give us a call. It could be the first step toward a brighter financial future.
Contact Minnillo Law Group Co., LPA, to schedule your free initial consultation. We have two offices in the Cincinnati area. Evening and weekend appointments are available.
How Mortgage Stripping Works
If your home is “underwater” (meaning that the value of your home is less than the amount owed on your first mortgage), you can strip a secondary mortgage. However, you cannot strip a secondary mortgage if the value of your house exceeds the amount of the debt.
In a Chapter 13 bankruptcy, you receive a three to five-year repayment plan. This places an automatic stay on foreclosure, repossession, garnishment and collection lawsuits. It also stops the accumulation of interest fees. You make affordable monthly payments, and at the end of the repayment period, your remaining dischargeable unsecured debts are discharged. This can include secondary mortgages or home equity loans or lines of credit.
Our attorneys understand the rules regarding mortgage stripping, and how to help our clients obtain maximum debt relief. We can help you understand your options and make decisions that are right for you.