Mortgage Lien Strips in Virginia
Stripping Your Second Mortgage
Do you have two mortgages? Has your house decreased significantly in value since you purchased it? This is a common situation and individuals who are facing these complications need to work with an attorney from the Law Office of Philip R. Boardman, P.C.
Our Hampton bankruptcy lawyers can provide you with information and representation in eliminating your second mortgage through a process called "mortgage lien stripping." By eliminating your second mortgage, you can help get yourself out of a financial rut and begin working on obtaining your financial freedom. Our firm is dedicated to ensuring that you reach an amicable resolution in a short amount of time by assisting you in quickly and effectively filing for bankruptcy.
Explanation of Mortgage Lien Stripping
"Lien stripping" is a portion of Chapter 13 bankruptcy that allows people who are upside down on mortgages hand over their second or third mortgages to the court and have the secured debt transferred into unsecure debt, which is then eliminated in a Chapter 13 bankruptcy. Second mortgages and third mortgages are often referred to as "junior liens," and you can only strip this junior lien if the senior lien exceeds the actual amount of the property as the property stands on market value the day that you file.
When you file for Chapter 13 bankruptcy, your second mortgage will become non-secured debt. In Chapter 13 bankruptcy, your non-secured debt will be paid off over a pre-determined court payment plan, allowing you to pay a portion of the debt through the payment plan. If the payment plan is completed during the course of the bankruptcy, the remaining mortgage amount will usually be discharged. This final amount remaining on your junior lien will be stripped, and you will only be left with your senior lien, which is the only non-secured debt left on your mortgage balances.
If this seems like the right option for you and your financial situation, it is highly recommended that you work with the Law Office of Philip R. Boardman, P.C.
Dedicated Representation in Hampton, Virginia
When you are stuck in a financial rut and are worried that your expenses are beginning to greatly exceed your income, it is important that you retain the representation of a trusted Hampton bankruptcy lawyer from our firm. We are devoted to ensuring that our clients are well taken care of and will not only ensure that your bankruptcy is filed correctly, but also will help you rebuild your credit after you file.
All of our attorneys are licensed to practice in Virginia, Florida, Georgia and District of Columbia. If you are looking to remove a second mortgage on a property in Florida or Georgia, the local laws in these states may allow you to strip your lien when you file for Chapter 7 bankruptcy. If you have questions or concerns about your situation or if you are eligible to remove your second or third mortgage, contact the Law Office of Philip R. Boardman, P.C. right away and schedule a free case evaluation as soon as possible.