Carle Place, New York (PRWEB) January 01, 2014
Homeowners who have modified their first mortgages, but are still burdened with a second mortgage and other debts, can virtually eliminate these debts in Chapter 13 bankruptcy.
Long Island Bankruptcy Lawyer Richard S. Feinsilver has successfully “stripped” second and third mortgage liens for Long Island and Queens homeowners for over 20 years.
“Chapter 13 Bankruptcy offers an important, and often unknown and over-looked, option to consumers who have second and/or, perhaps third, residential real estate mortgage liens on their primary residences – namely, that of removing those junior liens from their home. If the current fair market value of a residence (as determined by an appraisal prepared by a licensed real estate appraiser) is below the present outstanding balance on your first mortgage (including arrears, if applicable), the second mortgage lien can be “stripped”, and the debt associated with it can be reclassified as a unsecured debt (such as credit card debt, etc). This is also referred to as a “Cramdown” or “Lien Stripping.”
“Even if a homeowner has already modified their first mortgage, or are in a trial modification, this relief may be available. In most Chapter 13 Bankruptcy cases, only a small portion of unsecured debt is repaid over a 3 to 5 year period. Immediately upon the successful completion of a Chapter 13 payment plan, the second (junior) mortgage lien shall be permanently removed from your property by Order of the Bankruptcy Court. Please be aware, though, that in order to qualify for this benefit, you must meet the usual and customary qualifications for Chapter 13 bankruptcy.”
For more information, contact Mr. Feinsilver at 516-873-6330