Riverside Bankruptcy Lawyers – Due to the decreasing values in the Riverside real estate market, our Riverside bankruptcy lawyers see more and more people qualifying entirely eliminate the second mortgage on their homes. We see people come into our Riverside Bankruptcy Lawyers practice worried about home foreclosure. Usually, they tell us how their home value has decreased to the point where they can no longer afford payments, but can’t sell it because the value is below the combined total of their first and second mortgages.
However, if the homeowner has a higher first mortgage loan value than the value of their home, it may be possible to eliminate the second mortgage through a Chapter 13 bankruptcy. As Riverside bankruptcy attorneys, we see this foreclosure situation a lot, and believe that maybe a quarter of all American mortgages are currently upside-down. For instance, a homeowner might owe $350,000 on a home ($275,000 on the first and $75,000) that was purchased when real estate was valued much higher, back in the boom days. However, now, the recession economy has decreased that value to $250,000, our client is struggling to make payments, and loan modification didn’t work out. That’s why they are consulting a bankruptcy lawyer.
Our advice as bankruptcy attorneys is to file for a Chapter 13 bankruptcy. In that filing, a motion will be filed to notify the court that the amount of the mortgage exceeds the value of the home. Usually, in situations like this, the bankruptcy court will convert the secured debt of the second mortgage into an unsecured debt. In this way, the bankruptcy code can be used to essentially perform a loan modification and remove the burdensome second mortgage. With the second mortgage gone, it relieves some of the financial pressure, allowing the struggling homeowner to get back on better financial footing.
Facing foreclosure can be traumatic. That’s why you need to call 888.558.2992 as soon as possible to speak to a bankruptcy attorney at the Law Offices of Harold D. Thompson, Riverside Bankruptcy Attorneys. We have 35 years of experience in helping people through financial hardship, including the specter of foreclosure. Your initial consultation is free, so don’t delay—call today! We want to help you toward a fresh start.
As Riverside Bankruptcy Lawyers helping people with Chapter 7 & Chapter 13 Bankruptcy debt relief we are proud to serve the following areas of Riverside County: Riverside, Palm Springs, Banning, Beaumont, Blythe, Calimesa, Canyon Lake, Cathedral City, Corona, Coachella, Desert Hot Springs, Hemet, Indian Wells, Indio, Lake Elsinore, La Quinta, Menifee, Moreno Valley, Murrieta, Norco, Palm Desert, Perris, Rancho Mirage, San Jacinto, Temecula, Wildomar and all unincorporated areas of Riverside County.
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