Ft. Lauderdale Bankruptcy Attorney

Taking Action to Eliminate a Second Mortgage

Florida has been particularly hard hit by the current economic downturn. Many individuals now owe far more on their homes than what the property is actually worth. When financial difficulties hit, and individuals are unable to make mortgage payments, mortgage lenders or other creditors encourage the struggling individual to take out a second mortgage on their homes. Deciding to take out a second mortgage can strain your finances to the breaking point because now you will have two mortgage payments every month instead of one. At The McCue Law Firm, we are here to help you shed your second mortgage so that you do not have to bear the burden of these additional monthly payments.

Shedding a Second Mortgage Through Chapter 13

It is very important and encouraging to hear that due to the current real estate market in Florida, many individuals have succeeded in keeping their homes while completely shedding their second mortgages. These individuals have been able to do this because the value of their homes was less than what they owed on their first mortgage. Since the first mortgage is far more than the actual value of the home, the second mortgage becomes an unsecured debt and is therefore eligible for discharge through bankruptcy. This process is referred to as "lien stripping".

We know that not every individual is in the position of having a mortgage that is higher than the value of his or her home. If you have equity in your home yet you still have large second mortgage, filing for Chapter 13 bankruptcy could eliminate your additional mortgage when the process is completed. One common misconception about Chapter 13 is that you will still have to pay back the full amount of your debt. If you file for a Chapter 13 bankruptcy, in most cases you will pay back only a fraction of your total debt. A Ft. Lauderdale bankruptcy lawyer from our firm can talk you through the entire bankruptcy process so that you can make a clear decision about your financial future.

If you have a second mortgage that you would like to eliminate, contact a Ft. Lauderdale bankruptcy attorney today.