Desperate times may have called for desperate measures. A serious financial setback caused by medical issues or a job loss resulted in a second mortgage on your home. The additional burden of a monthly payment coupled with higher interest rates only led to more problems down the road. Bankruptcy may be the answer to discharging or reorganizing that debt and keeping your home.
At Krigel & Krigel, we help clients start over by discharging and reorganizing unmanageable debt, which may include the stripping (elimination) of a second mortgage.
A Permanent Solution
Second mortgages present challenges. Your home value may have dropped over the years, putting you “under water” and owing more than the house is worth. You may have been served with foreclosure papers. You have a problem that needs a permanent solution, not a short-term fix.
If your first mortgage exceeds the value of the home, it may be possible to strip (or eliminate) the secured debt status of the second mortgage as part of the bankruptcy proceedings, making it a dischargeable loan. Eliminating that crucial burden can help set you on the path back to financial stability.