Coachella Valley Bankruptcy Attorney
As a Coachella Valley Bankruptcy Attorney serving the Riverside County area I have helped many home owners and renters with debt problems and leveled the playing field to allow them to get a fresh start and keep their dreams of remaining in a home they purchased.
One of the most power tools in the bankruptcy code in our current housing dynamic is the ability to strip a lien on a home. This was not so common during most of recent history when the housing markets were going up and the sub-prime and creative loan refinancing and 100% financing were not common place.
If you own a home and you owe more to your first then your home is worth then your second or third lien can be treated like unsecured debt in a chapter 13 and when you are done making payments after 3-5 years they will be extinguished and you will only owe money to your first mortgage company. Hopefully by then homes have gone up in value and you might actually be able to turn a profit on a home instead of being in the current dilemma of looking at a short sale or walking away from a home due to foreclosure.
This is a great situation as you won’t need good credit to buy a new home at a great rate since you’ll be staying in your current home and will likely have equity once your chapter 13 plan is done. I highly suggest people who are facing foreclosure, short-sales and other housing issues talk to a bankruptcy attorney and know your options on your biggest investment.