Getting Red of Second Mortgage...

[CH33 Paralegal]

good point JB....what his counsel is doing is PROPOSING that the debt is valued at that, with very little guarantee.

[DeadManCrawling]

How did you determine the value of the home? Most homes in the price range you are in have taken a more severe beating than you seem to account for on yours.

I bring this up because if you are planning on some housing rebound to assist you later with a potential refinance or to pull equity out, you could be in for a very unpleasant surprise.

I would recommend looking at sales records for your neighborhood and others in close proximity. Call a few realtors and ask them to run a CMA if you haven't already.

You could be making a deadly mistake if you are figuring that the market will recover and help you out ina few years.

Also, I don't know how wise it is to file BK to readjust your payments or lien-strip on a property that is under water, when that seems to be your only major debt.

What happens in 3-4 years if something really, REALLY serious occurs, a major medical event. loss of job, or (God forbid) death or life-altering injury?

You could find yourself without options because of this filing.

Just make sure you have both eyes open and have considered all the facets of this.

Good luck in all you do!

[scla]

Removing Your Second Mortgage

In Chapter 13 bankruptcy it is possible to treat your second mortgage as completely unsecured where the value of your home is at or below the total outstanding first mortgage. The second mortgage will be treated as unsecured debt in your Chapter 13 bankruptcy. In many instances you will end up paying anywhere from 0% to higher on your outstanding unsecured debt as part of your Chapter 13 bankruptcy. You can learn more information on how the process works at Remove Second Mortgage