Healdsburg Second Mortgage Lawyer
Protect Your Property for a Fresh Start
In today's troubled real estate market, many homeowners face mortgage debt that exceeds their homes' values. When housing debt and other debt become overwhelming, lien stripping may provide a way to quickly reduce debt.
What Is Lien Stripping and How Does it Work?
Usually, mortgages, home equity loans/home equity lines of credit (HELOCs), second mortgages and other debts related to the financing homes are not dischargeable. Why? Because they are secured by the property they were used to pay for.
Now that home values have fallen, though, second mortgages are dischargeable if the value of the home has dropped below the value of the first mortgage. For example:
- Assume a home was purchased for $300,000
- The home was financed with a first mortgage of $240,000 and a second mortgage of $60,000
- The home is now worth $235,000
The second mortgage of $60,000 is now no longer secured because 1) there is no longer enough value in the house to secure both mortgages, 2) because the first mortgage has first claim to the home's equity.
Once a second or third mortgage is unsecured, it can then be discharged through bankruptcy, like credit card and medical expense debt.
If you face unmanageable debt and declining home values, consider discussing solutions with an experienced Santa Rosa lien-stripping lawyer. Attorney Brian Barta of the Law Offices of Brian Barta has helped thousands of clients find a fresh start through bankruptcy. For more information regarding lien stripping and bankruptcy, contact our office.
Contact Us
Our office is open Monday through Friday from 8 a.m. to 5 p.m., and we offer evening and weekend appointments. We also charge reasonable rates, offer easy-payment plans and are located near free and convenient parking. To contact a California bankruptcy lawyer, call 707-623-1175 or 888-350-9821. Se habla español.
