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Under current bankruptcy law it is possible to eliminate or "strip" a 2nd trust deed (mortgage) through chapter 13 bankruptcy. A competent experienced bankruptcy attorney can accomplish this. There is a lot of misinformation propogated in this area often by persons attempting to take advantage of others. The basic requirement is that the value of the home is less than that owed by the first trust deed. The 2nd trust deed becomes an unsecured debt and no longer a lien on the home. When the chapter 13 is concluded any balance owed to unsecured creditors including the 2nd trust deed is discharged. Answer provided by a bankruptcy attorney with over 30 years of experience.
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Filed chapter 7 bankruptcy is second mortgage gone?
If you are keeping your house and you have a first and a second, your second will not go away. If you are letting your house go, then the first and second will go. If your house is more than or equal to your first mortgage and you file a chapter 13, then your second will be "gone" in the end.
What is a good mortgage company than can help you out of chapter 13?
A Mortgage company can not help you get out of chapter 13 when your ten years is up then your be out.
How does Chapter 13 Bankruptcy help a person?
There are many benefits associated with filing a Chapter 13 bankruptcy. The types of benefits that will result will depend on the facts of the case. Below is a few of the benefits available with filing a Chapter 13 bankruptcy.Pay Mortgage Arrears- You can set up a 3 to 5 year plan to pay mortgage arrears that are past due on your home. If you are in the process of being foreclosed and you are behind on your mortgage, you can set up a repayment plan for your mortgage arrears.Strip Second Mortgage- If your home value is below what you owe on your first mortgage and you have a second mortgage, you may be able to remove your second mortgage in a Chapter 13 bankruptcy.Pay Back Taxes- If you owe taxes to the federal and state government, you can set up a repayment plan through a Chapter 13 bankruptcy.These are just a few of the benefits that a Chapter 13 bankruptcy can provide.
Does bankruptcy clear second mortgage loans?
Second mortgages can be discharged only in a Chapter 13 and only if there is no equity in the real estate for the loan to attach to.
Can you file chapter 13 bankruptcy keep your house but get rid of a second mortgage?
It depends on whether the second mortgage attaches to any equity in the property. If the house is worth as much or more than the first mortgage balance, you may well be able to.
When you file chapter 13 does the interest get lowered on your mortgage?
No.
Can a 2nd mortgage be included in Chapter 13?
Yes.
Can you file CHAPTER 13 bankruptcy on my second mortGage?
Removing a Second Mortgage Chapter 13 Bankruptcy also offers an important, and often unknown, option to consumers who have a residential real estate mortgage, namely, removing a junior lien holder or "2nd" mortgage from your home. If you purchased a home with 80/20 mortgages or if you took out a second mortgage in the past few years, you may be able to remove the second mortgage. If the fair market value of your home is below what is owed on the first mortgage, the second mortgage can be removed and the debt associated with it becomes unsecured debt (treated like your credit card debt). In a Chapter 13 Bankruptcy, usually only a small, if any, portion of this type of debt is paid. We will need to obtain an appraisal and comps to establish your home's fair market value. We will also need to obtain approval of the court. The mortgage company may oppose this motion. If they do, there may be further court proceedings. At this time, the mortgage companies are not typically opposing our motions to remove the second mortgages. You will need to make all plan payments to obtain your discharge. Once you have the discharge, the second mortgage is gone.
Can you leave a chapter 13 bankruptcy open and refinance your current mortgage if the mortgage?
This question is incomplete. In most districts, you cannot incur new debt if you are a debtor in an active chapter 13 case. To refinance or incur any new debt, you have to obtain the consent of the Standing Chapter 13 Trustee in your case.
What chapter should you file if you are behind on your mortgage?
only in chapter 13, you cannot use chapter 7 to catch up on past payments.
Can you get a mortgage loan if you are in a chapter 13 bankruptcy?
If you are lucky, yes. But most likely, no lender will give you a mortgage loan if you are or have declared bankruptcy.
You sold your house in a short sale The first mortgage was forgiven but the second was an equity line The bank said you had a mortgage dificiency Can you file bankruptcy now for the deficiency?
Yes, you can file a Chapter 7 to have the debt liquidated or a 13 to go into repayment.
