The threat of losing your home to foreclosure is among the most difficult and stressful aspects of having debt problems. Especially for those people who have two or more mortgages, it can seem impossible to get on top of what you owe. Fortunately, Chapter 13 bankruptcy provides the ability to strip a junior lien from your primary residence if it is valued lower than your combined mortgage total, substantially reducing your total monthly mortgage payments.
At Liviakis Law Firm, we represent clients who are seeking relief from their complex debt problems. As experienced Sacramento loan modification attorneys, we will thoroughly and clearly explain the Chapter 13 bankruptcy process, advise on how it can benefit your financial situation and guide you toward your goal of stability. For a free initial phone consultation, contact us today.
When a second mortgage is stripped from your residence, it is reclassified from secured to unsecured debt. As unsecured debt, the surplus value of the loan can be included as part of your Chapter 13 bankruptcy repayment plan, which allows you to pay just a portion of it over 36-60 months while continuing to make your primary mortgage payments.
It is of great importance that you work with a bankruptcy lawyer who is able to skillfully assist you in creating a reasonable repayment plan. Failure to complete the repayment plan reinstates what was originally owed on your second mortgage.
Chapter 13 debtors may stop foreclosure actions and catch up on their delinquent loans payments over time. The bankruptcy court can approve a payment plan that repays banks and mortgage companies slowly over time. Modifying a loan through the bankruptcy court is much different than applying for a loan modification directly through the bank. A bankruptcy reorganization plan can be approved without the consent creditors.
The bankruptcy lawyer you choose can have a large impact on the outcome of your case, and consequently, your financial outlook. Contact an office near you for a free initial phone consultation with a knowledgeable Sacramento and Citrus Heights unsecured second mortgage lawyer who is ready to use his experience to help you achieve your financial goals and help you start building a secure financial future.
With offices conveniently located in Rancho Corodova and Sacramento, I represent clients in communities throughout Sacramento County, El Dorado County and Placer County, California. I offer appointments from 9 a.m. to 5 p.m. Monday through Friday, with free parking available.