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Getting Rid of a Second Mortgage in Chapter 13 Bankruptcy
Many people here in New Jersey have more than one mortgage. This may be because they purchased it with an 80/20 loan (one loan for the “downpayment," another for the remainder of the purchase price), borrowed money for a home improvement like a kitchen remodeling, or got a debt consolidation loan.
Either way, many times when they fall into financial hardship, that second mortgage payment can become a burden. The question becomes, if you have to file bankruptcy, can you get rid of it? “Stripping off” a mortgage in bankruptcy is possible, but there are three things to bear in mind. Get more information here.
You must file a chapter 13, not chapter 7
Your home value must be substantially lower than your first mortgage balance
You must complete your chapter 13 plan
Richardson Law Offices serves New Jersey, including:Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.