Many people have taken out home equity loans or second mortgages. Second mortgages can be modified the same way first mortgages. Hamp has a provision for second mortgage modifications. In a Chapter 13 bankruptcy it is possible to strip the second mortgage from the house and make it like unsecured debt. It is conceivable that the client would only have to repay 5 to 10% of the second mortgage in a strip. Accordingly if the housing crisis ceases and home values begin to increase again, the house will not be burdened by the second mortgage. We have some very specific recommendations regarding second mortgages and we urge potential clients to discuss them with us. Huge benefits for homeowners can exist due to lien strips.
When it comes to modifying a second mortgage you should hire an experienced Westchester County bankruptcy attorney to assist. At our law firm we understand all aspects of mortgage modification and will be able to provide the best possible legal approach to yoru situation.
Contact our law firm at 914-827-5238 and schedule a consultation today.