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Second Mortgage and Lien Removal
With the easy and improper lending procedures of the past lending climate, many homeowners over-leveraged their properties through second mortgages, HELOCS and credit lines that now destroy their homes' equity and threaten their ability to make monthly mortgage payments. Many of these "easy" credit lines were interest only and are now coming due. In the current depressed real estate market, many homeowners are finding their home values have dropped so significantly that they now owe more on their first mortgage than their home is even worth. While the government is tempting troubled borrowers with loan negotiations and mediations to modify home mortgages, these approaches are often unsuccessful and do not address second mortgages or other problem encumbrances liened against your property. Fortunately, with proper legal counsel, homeowners can resolve these second mortgages and equity lines by restructuring or eliminating those secured obligations through the Chapter 13 bankruptcy process.
Quality Bankruptcy Legal Services Since 1983
At The Law Offices of Neil Crane, LLC, we offer experienced and knowledgeable legal advice tailored to the needs of clients. With offices in Hamden, Waterbury, Rocky Hill, Ridgefield, and Bridgeport, our Chapter 13 bankruptcy lawyers advise homeowners and other clients throughout Connecticut on how to effectively address their debt problems as a whole using the protections of the Bankruptcy Code.
Chapter 13 Protects Homes and Removes Second Mortgages
Chapter 13 bankruptcy saves homes by providing relief from obligations beyond just first mortgage modification. Even if homeowners get a chance to modify a first mortgage, they don't get relief on other mortgages or equity lines, even though this overall relief is absolutely necessary to a family's long-term ability to keep their residence. This is especially true given the size of many of these secondary obligations and the fact that they are often variable rate, interest only, short-term lines of credit. Sizeable payments on second mortgages and equity loans with no principal reduction or guarantee of interest rate protection rob family income from more essential payments. Mortgage modification and solutions that don't address these concerns are unrealistic and contrary to the global, long-term success available under Chapter 13 plans.
Remove a Second Mortgage or Equity Line in Connecticut
Under the provisions of Chapter 13, borrowers can petition to remove, reduce, or eliminate certain encumbrances on properties that have fallen in value, such as:
- Home Equity Lines of Credit (HELOCs)
- Other liens
- Second mortgages
- Tax liens
Given the drastic reduction in real estate values, creditors that once appeared to be secured by high real estate values are now "unsecured" or "under-secured" and can therefore be subject to lien removal, reduction, or restructuring. Depending on the value of the underlying asset, second mortgages and credit lines can be readjusted and even eliminated in total if property values show that the creditor's claim is truly not "secured." This is commonly known as lien removal or lien stripping.
Chapter 13 bankruptcy allows for the removal of second mortgages, equity lines, and lines of credit in various circumstances that are increasingly common in today's depressed real estate market. The removal of second mortgages and other lien obligations also reduces your monthly mortgage obligation and, ultimately, increases and protects your equity. This assures that homes are as affordable as possible while also providing for long-term homeownership.
Contact an Experienced Connecticut Lien Removal Attorney
For further information regarding lien removal or stripping a second mortgage, schedule a consultation with a skilled Connecticut bankruptcy attorney at The Law Offices of Neil Crane, LLC. We offer a free consultation. Please do not hesitate to call us today at 888-249-3027, toll-free 1-800-616-DEBT, or complete our online contact form to discuss your questions and concerns with an experienced attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.