Many people still has second or third mortgages left from when home values were significantly higher. They added a second mortgage thinking their home value would continue to increase, only to find themselves stuck when prices plummeted. Now that prices are starting to climb back up, it may be time to speak to a St. Louis Chapter 13 Bankruptcy Attorney who may be able to strip those extra mortgages and get you current on your mortgage.
St. Louis Chapter 13 Bankruptcy Attorney on Stripping Second Mortgages
It is possible to have second mortgages classified as “unsecured debt” if the total of the mortgage exceeds the value of the home. For instance, imagine a person has a home worth $250,000. If their primary mortgage is for $250,000 and they have a second mortgage of $50,000, there is not enough equity in the home to cover that second mortgage. Due to this, it is possible to have it stripped because there is nothing securing that mortgage.
As home values climb, however, people will start to build equity in their homes again. While this is good, it could pose a problem should a person try to have their second mortgage stripped. If you have a second mortgage and are having trouble keeping up with the payments, it may be time to speak to a St. Louis Chapter 13 Bankruptcy Attorney to help get this debt under control.
At The Westbrook Law Group, we understand that mortgage problems can put major pressure on a family. We have helped many clients get their mortgage under control through Chapter 13, allowing them to stay in their homes while still getting the fresh start bankruptcy offers. To learn more about how we can help fight this stress, contact The Westbrook Law Group for a free consultation.