Posts Tagged ‘second mortgage’

Get rid of second mortgage in chapter 13

In Uncategorized on May 5, 2010 at 7:54 am

Chapter 13 allows some people to get eliminate second mortgages. For example, let’s say you have a first mortgage of $100,000 and a second mortgage of $25,000. If the appraised value of of your house is $95,000, the $25,000 second mortgage can be eliminated. Chapter 13 bankruptcy permits “stripping” the second mortgage in this case. The reason is that the amount of the first mortgage, $100,000, is greater than the value of the home, $95,000.