Chapter 13 Lien Stripping-Second Residence/Rental Properties
Glen Burnie, Maryland Lawyer: Lien Stripping for Second Homes and Rental Properties
Stripping a Second Mortgage in Maryland
Is home foreclosure also a threat to your second home or rental property? Chapter 13 lien stripping is also a possible remedy. Just as with lien stripping for primary residences, Chapter 13 bankruptcy can strip second mortgages on second homes or rental properties. When the value of the second home or rental property is wholly unsecured, then the second or even third mortgage can be stripped. The mortgage debt is reclassified as unsecured debt and can be discharged. However, you must successfully complete the three-to-five-year repayment plan you committed to under your Chapter 13 bankruptcy filing. Otherwise there are consequences, such as your mortgage becoming secured debt once again and still being owed to lenders and creditors.
Committed to Excellence in Bankruptcy and Foreclosure Representation
For more information about foreclosure remedies for your second residence or any commercial rental properties, seek the skilled assistance from our Baltimore area Chapter 13 lien stripping attorney. At Timothy J. Mummert, P.A., we provide exceptional and personalized bankruptcy and foreclosure representation. We can also discuss any alternatives to bankruptcy. Contact us online or call 410-609-6715 today.
Help With Debt on Second Homes or Rental Properties
Lien stripping on second homes or rental properties is pretty much the same as lien stripping on a primary residence. If the fair market value of the property is less than what is owed to the lender, then the property is eligible for Chapter 13 lien stripping. The second or third mortgage is reclassified as unsecured debt. By placing the arrears in the Chapter 13 repayment plan, the debt can be discharged and the home or property saved. This only happens if the Chapter 13 repayment plan is completed successfully. Also, once the second mortgage is removed the first mortgage is lowered in value so the principle on the first mortgage matches the fair market value of the house.
You must qualify for Chapter 13 in order to take advantage of lien stripping. There are income requirements. Find out if you are eligible for Chapter 13 lien stripping today.
Contact Us Today for an Experienced Maryland Lien Stripping Lawyer
Have a discussion today with lawyer Timothy Mummert. He can enable you to move forward with confidence toward recovery and a return to peace of mind. Please act today to set up a consultation and get the legal counsel you need.